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Toyota Inc has accumulated the following data for the past 5 months: Number of units Total overhead cost August 2,250 $39,820 September 2,340 $38,650 October
Toyota Inc has accumulated the following data for the past 5 months:
Number of units Total overhead cost
August 2,250 $39,820
September 2,340 $38,650
October 2,180 $37,880
November 2,080 $35,830
Toyota Inc, uses the high/low method of separating mixed costs into variable and fixed components.
Required: A. Calculate the variable overhead costs per unit and the total fixed overhead costs.
B. If the company expects to produce 3,000 units in January, what will the estimated total overhead cost be?
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