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Perez Company uses activityminusbased costing. The company is trying to estimate the costs of the processing activity in the factory. The company has developed the
Perez Company uses
activityminusbased
costing. The company is trying to estimate the costs of the processing activity in the factory. The company has developed the following flexible budget formula:
Y = $10.50X + $13,000
Where: Y = Total processing cost per quarter and X = Number of machine hours
If 10,000 machine hours are used next quarter, total variable costs are ________ and total fixed costs are ________.
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