Question
The Henderson Company estimates total fixed factory overhead costs to be $4,000,000 per year, and variable overhead costs of $120 for every machine hour used.
The Henderson Company estimates total fixed factory overhead costs to be $4,000,000 per year, and variable overhead costs of $120 for every machine hour used. What is the cost equation used to estimate factory overhead costs for the year?
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Y = $120X
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Y = $4,000,000 + $120X
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Y = $4,000,000 - $120X
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Y = 4,000,000X
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Auditing And Assurance Services A Systematic Approach
Authors: William F. Messier
6th Edition
0073526908, 9780073526904
