Uptown Systems uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Busiest month 21,600 (August) Slowest month 13,200 (February) Direct Labor Costs $1,020,000 $840,000 If Uptown expects to use 16,500 machine hours next month, what are the estimated direct labor costs? (Round your answer to the nearest Dollar)

Uptown Systems uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Busiest month 21,600 (August) Slowest month 13,200 (February) Direct Labor Costs $1,020,000 $840,000 If Uptown expects to use 16,500 machine hours next month, what are the estimated direct labor costs? (Round your answer to the nearest Dollar)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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What are the estimated direct labor costs?
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What would be the best equation using the high-low method?