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Bexar Company's fixed overhead costs for the year are expected to be as follows: depreciation, $80,000; supervisory salaries, $90,000; property taxes and insurance, $25,000; and
Bexar Company's fixed overhead costs for the year are expected to be as follows: depreciation, $80,000; supervisory salaries, $90,000; property taxes and insurance, $25,000; and other fixed overhead, $15,000. Total fixed overhead is thus expected to be $210,000. Variable costs per unit are expected to be as follows: direct materials, $15.00; direct labor, $10.00; operating supplies, $2.00; indirect labor, $3.50; and other variable overhead costs, $2.50.
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