Ceiling fans by ikes overhead budget for 2009 was as

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Ceiling Fans by Ikes overhead budget for 2009 was as follows:

Factory supervision

$300,000

Utilities costs

150,000

Insurance

28,000

Property taxes

22,000

Depreciation

100,000

Total

$600,000



  • 600,000 units were produced in 2009.
  • Direct labor cost is $18,000,000.
  • For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour.
  • In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels.
  • Utilities costs vary proportionally with units produced.
  • Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours.
  • The 2010 expected production is 1,200,000 units.

What will be the value for utilities costs in the 2010 overhead budget?

Reference no: EM13589471

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