Estimate for the cost formula for the total cost

Reference no: EM13259715

A companyproduces a single product. The following volume and average costdata for two accounting periods have been provided bymanagement:

Number ofunits............................	500	800
Directmaterials.............................	$2.00	$2.00
Directlabor....................................	$1.50	$1.50
Manufacturingoverhead...............	$2.50	$1.75
Otheroverhead..............................	$1.00	$0.625

The best estimate for the cost formula for the total cost ofproducing and selling the product (where X is the number of unitsproduced and sold in a period) is:

A) $1,000 + $1.125 X

B) $1,000 + $3.50 X

C) $1,500 + $3.50 X

D) $1,500 + $4.00 X

Reference no: EM13259715

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