The Unix Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 18,950 Slowest month (December) 11,250 $915,000 $760,000 If Unix expects to use 14,100 machine hours next month, what are the estimated direct labor costs? (Round your answer to nearest Dollar)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
icon
Related questions
Question

NO AI ANSWER

The Unix Company uses the high-low method to determine its cost
equation. The following information was gathered for the past year:
Machine Hours Direct Labor Costs
Busiest month (June)
18,950
Slowest month (December) 11,250
$915,000
$760,000
If Unix expects to use 14,100 machine hours next month, what are the
estimated direct labor costs? (Round your answer to nearest Dollar)
Transcribed Image Text:The Unix Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 18,950 Slowest month (December) 11,250 $915,000 $760,000 If Unix expects to use 14,100 machine hours next month, what are the estimated direct labor costs? (Round your answer to nearest Dollar)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning