X company uses account analysis to estimate total overhead


X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 900 units, the plant manager classified each overhead cost item as fixed and variable as follows:

Cost Item            Total Cost            Cost Behavior

Supplies                  $25,000              100% variable

Utilities                     18,800               25% fixed

Maintenance         23,000               100% fixed

If September production is expected to be 1,080 units, what will variable costs per unit be?

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Financial Accounting: X company uses account analysis to estimate total overhead
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