Suppose that Harry's engineers found a way to reduce the number of setups by 40%. How...
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Suppose that Harry's engineers found a way to reduce the number of setups by 40%. How much would be saved in overhead cost for the following month? Problem 31: High-low Irvin Company has provided the following information: Units of Output 60,000 units Direct materials Workers' wages Supervisors' salaries Equipment depreciation Maintenance Utilities 360,000 2,160,000 624,000 302,400 163,200 768,000 4,377,600 84,000 units 504,000 3,024,000 624,000 302,400 220,800 1,056,000 5,731,200 Required: Using the high-low method and the information provided above, a. Identify the linear cost function equation and b. Estimate the total cost at 72,000 units of output Suppose that Harry's engineers found a way to reduce the number of setups by 40%. How much would be saved in overhead cost for the following month? Problem 31: High-low Irvin Company has provided the following information: Units of Output 60,000 units Direct materials Workers' wages Supervisors' salaries Equipment depreciation Maintenance Utilities 360,000 2,160,000 624,000 302,400 163,200 768,000 4,377,600 84,000 units 504,000 3,024,000 624,000 302,400 220,800 1,056,000 5,731,200 Required: Using the high-low method and the information provided above, a. Identify the linear cost function equation and b. Estimate the total cost at 72,000 units of output
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Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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