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 cost for the past six months: Machine- hours Overhead Cost Jan 150,000 P339,000 Feb 140,000 P328,000 Mar 160,000 P350,000 Apr 130,000 P319,500 May 170,000 P362,500 Jun 200,000 P400,000 Assume that the relevant range included 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
The management of Casablanca Manufacturing Corporation believes that machine- hours is an appropriate measure of activity for
Machine- hours Overhead Cost
Jan 150,000 P339,000
Feb 140,000 P328,000
Mar 160,000 P350,000
Apr 130,000 P319,500
May 170,000 P362,500
Jun 200,000 P400,000
Assume that the relevant range included 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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