PRU Corporation uses the high-low method to estimate manufacturing overhead cost, which is a mixed cost....
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PRU Corporation uses the high-low method to estimate manufacturing overhead cost, which is a mixed cost. The company believes direct labor hours is the primary driver of manufacturing overhead cost. According to PRU's high-low cost function, the variable manufacturing overhead rate is $10.20 per direct labor hour. At the high level of activity, PRU Corporation used 15,260 direct labor hours. At the low level of activity, the company used 14,860 direct labor hours. If total manufacturing overhead cost at PRU Corporation was $93,120 at the high level of activity, then what was the total manufacturing overhead cost at the low level of activity? $80,880 O $102,720 $94,960 O $89,040 O None of the above PRU Corporation uses the high-low method to estimate manufacturing overhead cost, which is a mixed cost. The company believes direct labor hours is the primary driver of manufacturing overhead cost. According to PRU's high-low cost function, the variable manufacturing overhead rate is $10.20 per direct labor hour. At the high level of activity, PRU Corporation used 15,260 direct labor hours. At the low level of activity, the company used 14,860 direct labor hours. If total manufacturing overhead cost at PRU Corporation was $93,120 at the high level of activity, then what was the total manufacturing overhead cost at the low level of activity? $80,880 O $102,720 $94,960 O $89,040 O None of the above PRU Corporation uses the high-low method to estimate manufacturing overhead cost, which is a mixed cost. The company believes direct labor hours is the primary driver of manufacturing overhead cost. According to PRU's high-low cost function, the variable manufacturing overhead rate is $10.20 per direct labor hour. At the high level of activity, PRU Corporation used 15,260 direct labor hours. At the low level of activity, the company used 14,860 direct labor hours. If total manufacturing overhead cost at PRU Corporation was $93,120 at the high level of activity, then what was the total manufacturing overhead cost at the low level of activity? $80,880 O $102,720 $94,960 O $89,040 O None of the above
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Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
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