Calculation of Total Overhead Costs

Question

X Company wants to estimate overhead costs in march, when production is expected to be 1,500 units. It used account analysis with the January cost information below to determine the parameters of the cost function. January production was 1,000 units.

                                                                  Total                Total Variable

                              Utilities                        $41,200              $41,200

                             Maintenance                   68,000                37,400

                             Supervision                    20,000                    0

What is X Company’s estimate of total overhead costs in March?

Summary: This question belongs to accounting and discusses about cost information to determine the parameters of the cost function and to find total overhead costs.

Total word count: 27