Balcom Enterprises is planning to introduce a new product that will sell for $110 a unit. Manufacturing cost estimates f

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Balcom Enterprises Is Planning To Introduce A New Product That Will Sell For 110 A Unit Manufacturing Cost Estimates F 1 (23.38 KiB) Viewed 27 times

Balcom Enterprises is planning to introduce a new product that will sell for $110 a unit. Manufacturing cost estimates for 21,500 units for the first year of production are: Direct materials 51,139,500. Direct labor $731,000 (based on $17 per hour 43,000 hours) Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Independent variable Intercept Coefficient on Independent variable Coefficient of correlation Factory overhead costs Direct labor hours $123,000 $ 4.00 0.920 0.820 Based on this information, what is the total overhead cost for an estimated activity level of 48,000 direct labor-hours?