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?
$
Answers: 1
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