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 = $156,000 + ($86 x Direct Labor Hours)

Required:

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

Overhead cost
$156,000
$86
Direct labor hours

2. If next month's budgeted direct labor hours equal 17,500, what is the budgeted overhead cost? $

3. If next quarter's budgeted direct labor hours equal 87,500, what is the budgeted overhead cost? $

4. If next year's budgeted direct labor hours equal 437,500, what is the budgeted overhead cost? $