Cost Behavior

Fresh Powder, Inc., manufactures snowboards. Based on past experience, Fresh Powder has found that its total annual overhead costs can be represented by the following formula: Overhead cost $=$ $$500,080+$ $$1\mathrm{.}31$X$,$ where X equals number of snowboards. Last year, Fresh Powder produced $18,800$ snowboards. Actual overhead costs for the year were as expected.

Required:

$1.$ What is the driver for the overhead activity?

For questions $2-4,$ Enter the final answers rounded to the nearest dollar.

$2.$ What is the total overhead cost incurred by Fresh Powder last year?

$fill in the blank $2$

$3.$ What is the total fixed overhead cost incurred by Fresh Powder last year?

$fill in the blank $3$

$4.$ What is the total variable overhead cost incurred by Fresh Powder last year?

$fill in the blank $4$

For questions $5-7,$ round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary.

$5.$ What is the overhead cost per unit produced?

$fill in the blank $5$

per unit

$6.$ What is the fixed overhead cost per unit?

$fill in the blank $6$

per unit

$7.$ What is the variable overhead cost per unit?

$fill in the blank $7$

per unit

$8.$ Recalculate Requirements $5,6,$ and $7$ for the following levels of production: $($a$)18,500$ units and $($b$)20,800$ units. Round your answers to the nearest cent.

$18,500$ Units $20,800$ Units

Unit cost $fill in the blank $8$

$fill in the blank $9$

Unit fixed cost fill in the blank $10$

fill in the blank $11$

Unit variable cost fill in the blank $12$

fill in the blank $13$

The reason the unit costs changed in the way they did is because:Required:

What is the driver for the overhead activity?

For questions $2-4,$ Enter the final answers rounded to the nearest dollar.

What is the total overhead cost incurred by Fresh Powder last year?

$q$

What is the total fixed overhead cost incurred by Fresh Powder last year?

$

What is the total variable overhead cost incurred by Fresh Powder last year?

$

For questions $5-7,$ round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary.

What is the overhead cost per unit produced?

$q$

per unit

What is the fixed overhead cost per unit?

$

per unit

What is the variable overhead cost per unit?

q

per unit

Recalculate Requirements $5,6,$ and $7$ for the following levels of production: $($a$)18,500$ units and $($b$)20,800$ units. Round your answers to the