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Sagot :
Answer:
$752,060
Explanation:
Calculation to determine what the total estimated cost of needed manufacturing supplies for July would be:
First step is to calculate the Variable cost per unit
Using this formula
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Let plug in the formula
Variable cost per unit= (853,560 - 723,060) / (540,000 - 450,000)
Variable cost per unit= $1.45
Second step is to calculate the Fixed costs
Using this formula
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Let plug in the formula
Fixed costs= 853,560 - (1.45*540,000)
Fixed costs= $70,560
Fixed costs= 723,060 - (1.45*450,000)
Fixed costs= $70,560
Now let calculate the total estimated cost
Total estimated cost= 70,560 + 1.45*470,000
Total estimated cost= $752,060
Therefore the total estimated cost of needed manufacturing supplies for July would be:$752,060
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