Ceiling fans by ikes overhead budget for 2009 was as

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Reference no: EM13589471

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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