If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with this thank you in advance!
![The management of Casablanca Manufacturing Corporation believes that machine-hours is an
appropriate measure of activity for overhead cost Shown below are machine-hours and total
overhead costs for the past six months:
Machine-
Overhead
Нours
Cost
Jan
150,000
P339,000
Feb
140,000
P328,000
Mar
160,000
P350,000
130,000
P319,500
Apr
Мay
170,000
P362,500
Jun
200,000
P400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated
total overhead cost be using the high-low method?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25b00fd1-824d-4515-8557-196ae18097d8%2F9a8992b2-606b-463b-88d7-232fbdb19c51%2Fey16zrx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The management of Casablanca Manufacturing Corporation believes that machine-hours is an
appropriate measure of activity for overhead cost Shown below are machine-hours and total
overhead costs for the past six months:
Machine-
Overhead
Нours
Cost
Jan
150,000
P339,000
Feb
140,000
P328,000
Mar
160,000
P350,000
130,000
P319,500
Apr
Мay
170,000
P362,500
Jun
200,000
P400,000
Assume that the relevant range includes all of the activity levels mentioned in this problem.
If Casablanca expects to incur 185,000 machine hours next month, what will the estimated
total overhead cost be using the high-low method?
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