The following data relate to the overhead expenditure of a contract cleaners at two activity levels.
Square metres cleaned
13,500
15,950
Overheads
$84,865
$97,850
What is the estimate of the overheads if 18,300 square metres are to be cleaned?
$ ________
The correct answer is: $110, 305
$5.30 per square metre
$84, 865 - ($5.30 x 13,500)
$84,865 - $71,550 = $13,315
Overheads on 18,300 square metres
$13,315 + (5.30 x 18,300)
$13,315 + $96,990
$110, 305
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