Beta Manufacturing collected the following data about its production overhead: Month Labor Hours Machine Hours Overhead Costs 1 850 1,200 $89,000 2 920 1,350 $95,600 3 780 1,150 $88,200 4 950 1,400 $98,000 5 880 1,250 $91,500 6 700 1,100 $86,000 a. Use the high-low method to estimate the fixed and variable portions of overhead based on machine hours. b. What would be the estimated monthly overhead costs at 1,300 machine hours?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter4: Activity-based Costing
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Beta Manufacturing collected the following data about its production overhead:
Month Labor Hours Machine Hours Overhead Costs
1
850
1,200
$89,000
2
920
1,350
$95,600
3
780
1,150
$88,200
4
950
1,400
$98,000
5
880
1,250
$91,500
6
700
1,100
$86,000
a. Use the high-low method to estimate the fixed and variable portions of
overhead based on machine hours.
b. What would be the estimated monthly overhead costs at 1,300 machine
hours?
Transcribed Image Text:Beta Manufacturing collected the following data about its production overhead: Month Labor Hours Machine Hours Overhead Costs 1 850 1,200 $89,000 2 920 1,350 $95,600 3 780 1,150 $88,200 4 950 1,400 $98,000 5 880 1,250 $91,500 6 700 1,100 $86,000 a. Use the high-low method to estimate the fixed and variable portions of overhead based on machine hours. b. What would be the estimated monthly overhead costs at 1,300 machine hours?
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