E3.1 (LO 1), AP Wren is trying to better understand her company's overhead costs to...
80.2K
Verified Solution
Link Copied!
Question
Accounting
E3.1 (LO 1), AP Wren is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered information from the last 3 months regarding production counts and key overhead costs, as follows. # of Units Produced 500 380 410 Utility Cost $600 505 533 Indirect Material Cost $900 684 738 Depreciation Cost $5,200 5,200 5,200 Required a. Based on just the information provided above, help Wren classify each of the three costs by behavior: variable, fixed, or mixed. Explain how you came to your determinations. b. If these 3 months are representative of the company's typical production, what is its relevant range? c. Would you expect the depreciation cost to remain at $5,200 if the company produces 1,000 units? Explain why or why not. 
couns and key overhirad conth, an Sollows. Aequired
E3.1 (LO 1), AP Wren is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered information from the last 3 months regarding production counts and key overhead costs, as follows. # of Units Produced 500 380 410 Utility Cost $600 505 533 Indirect Material Cost $900 684 738 Depreciation Cost $5,200 5,200 5,200 Required a. Based on just the information provided above, help Wren classify each of the three costs by behavior: variable, fixed, or mixed. Explain how you came to your determinations. b. If these 3 months are representative of the company's typical production, what is its relevant range? c. Would you expect the depreciation cost to remain at $5,200 if the company produces 1,000 units? Explain why or why not.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.