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Cost Behavior Fresh Powder, Inc., manufactures snowboards. Based on past experience, Fresh Powder has found that its total annual overhead costs can be represented
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 $2,500,000 $125x, where x equals number of snowboards. Last year, Fresh Powder produced 50,000 snowboards. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by Fresh Powder last year? 3. What is the total fixed overhead cost incurred by Fresh Powder last year? 4. What is the total variable overhead cost incurred by Fresh Jowder last year? 5. What is the overhead cost per unit produced? per unit 6. What is the fixed overhead cost per unit? Previous
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