X Company's accountant analyzed the following overhead costs in March to develop a cost function that could be used to predict overhead costs in future months.
|
Supplies
|
$23,200
|
|
Utilities
|
23,200
|
|
Maintenance
|
20,400
|
|
Insurance
|
11,800
|
The accountant classified these costs as follows: supplies were variable; insurance was fixed; variable utilities were $16,240; fixed maintenance was $6,120.
March production was 900 units; June production is expected to be 1,020 units.