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Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, Smoke City has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $536,410 + $1.46X, where X equals number of smokers. Last year, Smoke City produced 19,400 smokers. Actual overhead costs for the year were as expected. Number of hours Required: Number of orders 1. What is the driver for the overhead activity? Number of smokers Units sold For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by Smoke City last year? $ 3. What is the total fixed overhead cost incurred by SmokeCity last year? $ 4. What is the total variable overhead cost incurred by Smoke City last year? $ For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? per unit 6. What is the fixed overhead cost per unit? $ per unit 7. What is the variable overhead cost per unit? per unit 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,100 units and (b) 21,200 units. Round your answers to the nearest cent. 19,100 Units 21,200 Units Unit cost Unit fixed cost Unit variable cost The reason the unit costs changed in the way they did is because: the relevant range has increased the total fixed costs are increasing the fixed costs are being spread over the different levels of production. the unit variable cost is dropping as production rises

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