8 ph X Company uses account analysis to estimate total overh

8 ph X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 800 units, the plant manager classified each overhead cost item as fixed and variable as follows: Cost Item Utilities Supplies Maintenance Total Cost $26,800 22,300 18,500 Cost Behavior 100% variable 15% fixed 100% fixed If September production is expected to be 1,000 units, what will variable costs per unit be? 6. AO $24.31BO S32.33 CO $43.00 DO S57.19 EO $76.06 FO S101.16

Solution

Utilities variable cost 33.5 =26800/800 Supplies variable cost 23.69 =(22300*85%)/800 Total variable cost 57.19 Option D $57.19 is correct