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Description
Bob Jones owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Bob has gathered the following cost information from the past year:
|
Month |
Labor Hours |
Overhead Costs |
|||||||
|
January |
2,500 |
$54,400 |
|||||||
|
February |
3,164 |
65,033 |
|||||||
|
March |
3,198 |
61,524 |
|||||||
|
April |
4,200 |
69,424 |
|||||||
|
May |
4,533 |
69,928 |
|||||||
|
June |
5,545 |
74,652 |
|||||||
|
July |
6,548 |
74,648 |
|||||||
|
August |
7,500 |
78,482 |
|||||||
|
September |
7,180 |
75,616 |
|||||||
|
October |
4,620 |
69,308 |
|||||||
|
November |
3,172 |
71,748 |
|||||||
|
December |
6,785 |
74,772 |
|||||||
|
Total |
58,945 |
$839,535 |
|||||||
Variable Cost Per Labor Hour =4.82
Fixed Cost = 42359.00
Bob has booked 3,164 labor hours for the coming month. How much overhead should he expect to incur? (Round variable cost to 2 decimal places, e.g. 12.25 and all other answer to 0 decimal places, e.g. 5,275.)
|
Total cost = |
$ |
