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Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, Smoke City has found that its total annual overhead costs can be represented by
Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, Smoke City has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $555,765 + $1.25X, where X equals number of smokers. Last year, SmokeCity produced 20,100 smokers. Actual overhead costs for the year were as expected. 5. What is the overhead cost per unit produced? $ per unit 6. What is the fixed overhead cost per unit? per unit 7. What is the variable overhead cost per unit? $ per unit 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,600 units and (b) 21,300 units. Round your answers to the nearest cent. 19,600 Units 21,300 Units Unit cost $ $ Unit fixed cost Unit variable cost The reason the unit costs changed in the way they did is because
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