Month Labor-Hours Machine-Hours Overhead Costs

1 3,625 6,775 $513,435

2 3,575 7,035 518,960

3 3,400 7,600 549,575

4 3,700 7,265 541,400

5 3,900 7,955 581,145

6 3,775 7,895 572,320

7 3,700 6,950 535,110

8 3,625 6,530 510,470

9 3,550 7,270 532,195

10 3,975 7,725 565,335

11 3,375 6,490 503,775

12 3,550 8,020 564,210

a.Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours.

b.Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation?

Answer rating: 100% (QA)

Answer a To use the highlow method to estimate the fixed and variable portions of overhead costs bas... View the full answer