The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Busiest month (June) Slowest (December) Machine Hours Direct Costs Labor 14,750 $770,000 month 9,750 $620,000 If Shapely expects to use 12,000 machine hours next month, what are the estimated direct labor costs? A) $687,500 B) $1,008,260 C) $510,000 D) $400,969.

The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Busiest month (June) Slowest (December) Machine Hours Direct Costs Labor 14,750 $770,000 month 9,750 $620,000 If Shapely expects to use 12,000 machine hours next month, what are the estimated direct labor costs? A) $687,500 B) $1,008,260 C) $510,000 D) $400,969.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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