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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 Item | Total Cost | Fixed Cost |
Rent | $361,000 | $361,000 |
Supplies | 306,705 | 0 |
Utilities | 328,763 | 93,983 |
In July, direct labor hours were 10,500. If direct labor hours in November are expected to be 9,000, what are expected total costs for these three cost items in November?
A: $919,113 | B: $1,075,362 | C: $1,258,174 | D: $1,472,063 | E: $1,722,314 | F: $2,015,107 |
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