This question is based on analyzing the relationship of total factory overhead (Y)to direct labor hours (X).The following relationship was found: Y = $1,000 + $2X.The $2 in the equation is an estimate of:
A)Total fixed costs.
B)Variable overhead costs per direct labor hour.
C)Total overhead costs.
D)Fixed overhead costs per direct labor hour.

Question

Quizplus · Accepted Answer

In the given equation, $2X is the variable overhead costs that are incurred per direct labor hour. Therefore, the best choice is B - variable overhead costs per direct labor hour.

This Question Is Based on Analyzing the Relationship of Total