Question
Emerald Corporaiton's overhead budget for 2013 was as follows: Factory Supervision $450,000 Utilities costs 250,000 Insurance 30,000 Property taxes 25,000 Deprectiation 125,000 Total $880,000 750,000
Emerald Corporaiton's overhead budget for 2013 was as follows:
Factory Supervision | $450,000 |
Utilities costs | 250,000 |
Insurance | 30,000 |
Property taxes | 25,000 |
Deprectiation | 125,000 |
Total | $880,000 |
750,000 units were produced in 2013. Direct labor cost is $42,000,000. For both 2013 and 2014, each unit required 4 direct labor hours at $14 per hour. In 2014, property taxes, insurance, and depreciation are expected to stay at 2013 levels. Utilities costs vary proprotionally with units produced. Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours. The 2014 expected production is 1,200,000 units. What will be the value for utilities of Emerald in the 2014 budget?
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