Account analysis to estimate total overhead costs

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Reference no: EM13792218

X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 900 units, the plant manager classified each overhead cost item as fixed and variable as follows:

Cost Item Total Cost Cost Behavior

Supplies $25,000 100% variable

Utilities 18,800 25% fixed

Maintenance 23,000 100% fixed

If September production is expected to be 1,080 units, what will variable costs per unit be?

Reference no: EM13792218

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