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Find the total overhead cost for a month production

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Reference no: EM132972077

Problem - ABC Corporation conducted a regression analysis of its factory overhead costs. The analysis yielded the following cost relationship. Total factory overhead cost = P 50,000 per month + 5H

Where: H - number of direct labor hours, the selected cost driver for overhead costs. Each unit of product requires 6 direct labor hours. The company's normal production is 20,000 units of product per year.

Required - Find the total overhead cost for a month's production of 2,000 units?

Reference no: EM132972077

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