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?
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)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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