Achilles Inc. recorded the following data for operations during six months of the fiscal year: January...
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Achilles Inc. recorded the following data for operations during six months of the fiscal year: January February March April May June Overhead Cost $1,203,200 1,130,000 1,178,000 1,270,000 1,186,500 1,248,000 Labour hours 17,340 12,480 13,780 19,480 14,600 18,020 Required (A) Using the high-low method, compute the variable rate for overhead per labour hour. (B) Using the high-low method, compute the fixed cost. (C) What is the cost formula? (D) Using the cost formula from (C), estimate the overhead cost for 21,400 labour hours. (E) What are some of the advantages and disadvantages of using the high-low method? Please discuss. What alternatives do managers have to mitigate disadvantages of the high-low method? How do those methods mitigate these disadvantages? Achilles Inc. recorded the following data for operations during six months of the fiscal year: January February March April May June Overhead Cost $1,203,200 1,130,000 1,178,000 1,270,000 1,186,500 1,248,000 Labour hours 17,340 12,480 13,780 19,480 14,600 18,020 Required (A) Using the high-low method, compute the variable rate for overhead per labour hour. (B) Using the high-low method, compute the fixed cost. (C) What is the cost formula? (D) Using the cost formula from (C), estimate the overhead cost for 21,400 labour hours. (E) What are some of the advantages and disadvantages of using the high-low method? Please discuss. What alternatives do managers have to mitigate disadvantages of the high-low method? How do those methods mitigate these disadvantages?
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Using the highlow method compute the variable rate for overhead per labour hour 1270000 1130000 140000 19480 12480 7000 140000 7000 20 The variable ra... View the full answer
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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