The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the month of July when the expected production are 470,000 units. Below are the actual data from the prior three months of operations. Production in units 450,000 540,000 480,000 Manufacturing supplies P723,060 March April May 853,560 766,560 Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) A. P 805,284 P1,188,756 C. P 755,196 D. P 752,060 В.
The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the month of July when the expected production are 470,000 units. Below are the actual data from the prior three months of operations. Production in units 450,000 540,000 480,000 Manufacturing supplies P723,060 March April May 853,560 766,560 Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) A. P 805,284 P1,188,756 C. P 755,196 D. P 752,060 В.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![6. The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the
month of July when the expected production are 470,000 units. Below are the actual data from the prior three months
of operations.
Production in units
Manufacturing supplies
P723,060
853,560
766,560
March
April
May
450,000
540,000
480,000
Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that
would be needed for July? (Assume that this activity is within the relevant range.)
A. P 805,284
P1,188,756
С. Р 755,196
D. P 752,060
В.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85f3024a-2451-42de-af1c-4d7a590e09df%2F5816b6a8-49a6-4d0a-bab6-783b2fd54fba%2Fdthgl0v_processed.png&w=3840&q=75)
Transcribed Image Text:6. The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the
month of July when the expected production are 470,000 units. Below are the actual data from the prior three months
of operations.
Production in units
Manufacturing supplies
P723,060
853,560
766,560
March
April
May
450,000
540,000
480,000
Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that
would be needed for July? (Assume that this activity is within the relevant range.)
A. P 805,284
P1,188,756
С. Р 755,196
D. P 752,060
В.
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