Overheads are absorbed on a labour hour basis. HC has collected overhead information for the last...

 

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Overheads are absorbed on a labour hour basis. HC has collected overhead information for the last four months and this is shown below: Hours worked Overhead cost 9,300 9,200 9,400 9,600 Month 1 Month 2 Month 3 Month 4 HC normally works around 120,000 labour hours in a year. HC uses the high low method to analyse overheads. The learning curve equation is y = ax", where b = Log LR Log 2 -0.074 115,000 113,600 116,000 116,800 Required Calculate the total cost including all overheads for HC that it can use as a basis of the bid for the new apartment (10 marks) contract. Overheads are absorbed on a labour hour basis. HC has collected overhead information for the last four months and this is shown below: Hours worked Overhead cost 9,300 9,200 9,400 9,600 Month 1 Month 2 Month 3 Month 4 HC normally works around 120,000 labour hours in a year. HC uses the high low method to analyse overheads. The learning curve equation is y = ax", where b = Log LR Log 2 -0.074 115,000 113,600 116,000 116,800 Required Calculate the total cost including all overheads for HC that it can use as a basis of the bid for the new apartment (10 marks) contract.

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Computation of Overhead using High low Method Highest Cost 11680000 Lowes... View the full answer