Question: Builders Company uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,500 for 850 labour hours
Builders Company uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,500 for 850 labour hours worked and $27,200 for 950 for labour hours worked. Builders Company plans to work 875 labour hours next month, what is the expected total overhead cost? Use the high-low method to determine the variable and fixed costs components of Builders Company's operating cost equation First, identify the formula and calculate the variable cost component (slope) Variable cost per hour Next, identify the formula and compute the feed cost component (the vertical intercept) using the costs for the highest level of activity (Round your answers to the nearest whole dollar.) Total foxed costs Complete Builders Company's operating cost equation (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y=$**$ If Builders Company plans to work 875 labour hours next month, what is the expected total overhead cost? (Round your answer to the nearest whole dollar.) The total monthly operating costs if Builders Company works 875 labour hours is $
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