The CW16427 company uses direct labor-hours as its activity measure for overhead cost. Shown below are direct labor-hours and total overhead costs for the first half of the year: Overhead Direct labor-Hours Cost Jan 150,000 140,000 160,000 120,000 170,000 200,000 $339,000 $328,000 $350,000 $296,000 $362,500 $400,000 Feb Mar Apr Мay Jun Assume that the relevant range includes all of the activity levels for theW16427 company given in this problem. If CW16427 expects to incur 192,000 direct labor hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The CW16427 company uses direct labor-hours as its activity measure for overhead cost. Shown below are direct labor-hours and
total overhead costs for the first half of the year:
Overhead
Direct labor-Hours
Cost
Jan
150,000
140,000
160,000
$339,000
$328,000
$350,000
$296,000
$362,500
$400,000
Feb
Mar
Apr
May
120,000
170,000
200,000
Jun
Assume that the relevant range includes all of the activity levels for the EW16427 company given in this problem.
If CW16427 expects to incur 192,000 direct labor hours next month, what will the estimated total overhead cost be using the high-low
method? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$390,800
< Prev
3 of 12
Next >
17,650
tv
14
Transcribed Image Text:The CW16427 company uses direct labor-hours as its activity measure for overhead cost. Shown below are direct labor-hours and total overhead costs for the first half of the year: Overhead Direct labor-Hours Cost Jan 150,000 140,000 160,000 $339,000 $328,000 $350,000 $296,000 $362,500 $400,000 Feb Mar Apr May 120,000 170,000 200,000 Jun Assume that the relevant range includes all of the activity levels for the EW16427 company given in this problem. If CW16427 expects to incur 192,000 direct labor hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $390,800 < Prev 3 of 12 Next > 17,650 tv 14
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education