Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data
Gordon Company's controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost:
Overhead Cost = $150,000 + ($52 x Direct Labor Hours)
Required:
1
2. If next month's budgeted direct labor hours equal 8,000, what is the budgeted overhead cost?
$
3. If next quarter's budgeted direct labor hours equal 23,000, what is the budgeted overhead cost?
$
4. If next year's budgeted direct labor hours equal 99,000, what is the budgeted overhead cost?
$
