Question

Summary Output Regression Stats Multiple R R Square ADJ R Square Standard Error Observations 0.782425862 0.61219023 0.6044140

How many units to breakeven?

What is the breakeven revenue?

If your overhead was applied on units produced, but you set your overhead rate based on the number of units required to breakeven, will your overhead be over or under applied?

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Answer #1
Breakeven units = Fixed cost (Intercept)/(SP - VC (X variable 1)
Breakeven units = $1939.99/($2.85 - $1.14) 1134 Units
Break even Revenue = 1134 units x $2.85 $   3,233.32
Overhead Applied = $1939.98 + (12000 x 1.1376) $ 15,591.18
Actual Overhead =  $1939.98 + (1134 x 1.1376) $   3,230.58
Overapplied $ 12,360.60
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