Question
X Company's accountant uses account analysis to estimate costs for each month, with direct labor hours as the independent variable. In July, she did the
X Company's accountant uses account analysis to estimate costs for each month, with direct labor hours as the independent variable. In July, she did the following cost behavior analysis for three specific cost items:Cost ItemTotal CostFixed CostIndirect labor$332,139$97,619Utilities300,1440Insurance316,500316,500
In July, direct labor hours were 10,400. If direct labor hours in November are expected to be 10,900, what are expectedtotalcosts for these three cost items in November?A: $974,488B: $1,140,151C: $1,333,977D: $1,560,753E: $1,826,081F: $2,136,514
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started