Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data

Gordon Company's controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost:

Overhead Cost $=$ $$313,000+($$$76$ x Direct Labor Hours$)$

Required:

$1.$ Select the term in the right column that corresponds to the term in the left column.

Line Item Description Answer

Overhead cost

$$313,000$

$$76$

Direct labor hours

$2.$ If next month's budgeted direct labor hours equal $20,500,$ what is the budgeted overhead cost?

fill in the blank $1$ of $3$$

$3.$ If next quarter's budgeted direct labor hours equal $61,500,$ what is the budgeted overhead cost?

fill in the blank $2$ of $3$$

$4.$ If next year's budgeted direct labor hours equal $307,500,$ what is the budgeted overhead cost?