Question:

Analyze the information in relation to the cost behavior of the MOH costs. Does the

data appear to be sound or can you identify some potential data problems? Explain what

kinds of data problems could occur.

Write$-$out the regression$-$based cost equations as well as the high$-$low method cost

equations to determine that you could use to predict overhead costs. $($You should

identify four cost equations $-$ two each for DLH and units.$)$ Forecast total MOH costs for

January under each equation if it forecasts $21,500$ direct labor hours and $4,500$ units in

January.