Question: Based on the following for the first six months: Direct Labor Hours Manufacturing Overhead July 45,000 $295,000 August 60,000 $320,000 September 57,000 $323,000 October 52,000
Based on the following for the first six months:
|
| Direct Labor Hours | Manufacturing Overhead |
| July | 45,000 | $295,000 |
| August | 60,000 | $320,000 |
| September | 57,000 | $323,000 |
| October | 52,000 | $247,250 |
| November | 34,000 | $178,200 |
| December | 25,000 | $162,500 |
Required:
- Use the high-low method to estimate the cost formula
- Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock