00:01
Okay, so for this problem, we need to look at the january budget to make our estimate for march.
00:09
So it's kind of like a puzzle in regard to how it's worded to find out what information goes where.
00:19
So we know in january, 1 ,000 units were sold, so i'm just going to make a note.
00:23
And march, they think that they're going to sell 1450 units.
00:29
So from there, total overhead cost was 70 ,000, but of that total fixed overhead was 41 ,300.
00:42
So i'm going to put that down here, 4 ,300.
00:47
And that means that our variable overhead is the difference between those two numbers, which is 28 ,700.
00:56
So again, that's just the 70 ,000 total they told us, minus the 41 ,300 they told us was fixed.
01:04
Same thing with the admin costs.
01:06
33 ,000 was the total, but then variable admin costs was 6 ,600, which means we need to subtract 6 ,600 from 33 ,000 to get 26 ,400.
01:24
From here we know our total fixed cost is 67 ,700, and because they're fixed costs, it's going to translate exactly to the march budget.
01:35
Budget...