X Company uses account analysis to estimate total overhead costs for each month, with units...
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Accounting
X Company uses account analysis to estimate total overhead costs for each month, with units produced as the activity measure. In May, when production was 1,000 units, the plant manager classified each overhead cost item as fixed and variable as follows:
Cost Item
Total Cost
Cost Behavior
Supplies
$28,500
100% variable
Utilities
15,100
70% variable
Maintenance
19,900
100% fixed
If September production is expected to be 1,120 units, what are estimated total overhead costs in September (round unit costs to two decimal places)?
A: $32,432
B: $47,026
C: $68,188
D: $98,873
E: $143,366
F: $207,881
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