Question - X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. To determine the parameters of its overhead cost function, it used account analysis with the January cost information below and when production was 1,000 units.
|
|
Total
|
Total Variance
|
|
Utilities
|
$43,100
|
$43,100
|
|
Maintenance
|
70,000
|
33,600
|
|
Supervision
|
23,000
|
0
|
Using the resulting cost function, what is X Company's estimate of total overhead costs in March?