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

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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 $159,000+ ($88 x Direct Labor Hours) Required: 1. Select the term in the right column that corresponds to the term in the left column. Overhead cost $159,000 Dependent variable Fixed cost (intercept) $88 Variable rate (slope) Direct labor hours Independent variable 2. If next month's budgeted direct labor hours equal 18,500, what is the budgeted overhead cost? 3. If next quarter's budgeted direct labor hours equal 74,000, what is the budgeted overhead cost? hours 4. If next year's budgeted direct labor hours equal 444,000, what is the budgeted overhead cost? 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 $159,000+ ($88 x Direct Labor Hours) Required: 1. Select the term in the right column that corresponds to the term in the left column. Overhead cost $159,000 Dependent variable Fixed cost (intercept) $88 Variable rate (slope) Direct labor hours Independent variable 2. If next month's budgeted direct labor hours equal 18,500, what is the budgeted overhead cost? 3. If next quarter's budgeted direct labor hours equal 74,000, what is the budgeted overhead cost? hours 4. If next year's budgeted direct labor hours equal 444,000, what is the budgeted overhead cost?