The controller of Moonshine has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: Production in units Manufacturing supplies March 450,000 April 540,000 May 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) a. $755,196 b. $752,060. C. $781,060. d. $723,060 853,560 $805,284 766,560
The controller of Moonshine has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: Production in units Manufacturing supplies March 450,000 April 540,000 May 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) a. $755,196 b. $752,060. C. $781,060. d. $723,060 853,560 $805,284 766,560
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 27BEB: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...
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![The controller of Moonshine has requested a quick estimate of the manufacturing
supplies needed for July when production is expected to be 470,000 units. Below are
actual data from the prior three months of operations:
Production in units Manufacturing supplies
March 450,000
April 540,000
May 480,000
Using these data and the high-low method, what is the best estimate of the cost of
manufacturing supplies that would be needed for July? (Assume that this activity is within
the relevant range.)
a.
$755,196
b.
$752,060.
C.
$781,060.
d.
$723,060
853,560
$805,284
766,560](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13ae997d-8f13-4e4d-9970-4aa7e75899f7%2F6dd3ec8c-2c23-4a01-8388-8ad252ddd78c%2Fjzq56asn_processed.png&w=3840&q=75)
Transcribed Image Text:The controller of Moonshine has requested a quick estimate of the manufacturing
supplies needed for July when production is expected to be 470,000 units. Below are
actual data from the prior three months of operations:
Production in units Manufacturing supplies
March 450,000
April 540,000
May 480,000
Using these data and the high-low method, what is the best estimate of the cost of
manufacturing supplies that would be needed for July? (Assume that this activity is within
the relevant range.)
a.
$755,196
b.
$752,060.
C.
$781,060.
d.
$723,060
853,560
$805,284
766,560
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