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Assume the accountant used the high-low method to develop the overhead cost function with the actual May and June total cost and activity information. Using the resulting cost function, what would be the estimate of total overhead costs in July [round variable costs per unit to two decimal places]?
X Company’s accountant collected the following actual total cost and activity information from the past two months to help her develop an overhead cost function that she could use to predict overhead costs in July, when production is expectecto be 10,700 units: Month Overhead Cost Units ProducedMay $27,520 7,400June $31,200 9,000 6. Assume the accountant used the account analysis method with data from May to develop the cost function. She collected the following additional May information: supply cost was $11,870, all variable; maintenance cost was $5,500, 70%variable; and rent was $10,150, all ﬁxed. Using the resulting cost function, what would be the estimate of total overhead costs in July [round variable costs per unit to two decimal places]? $34,484
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