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Question - Inc. recorded the following data for operations during six months of the fiscal year:
Overhead Cost
Labour hours
January
$601,600
34,680
February
565,000
24,960
March
589,000
27,560
April
635,000
38,960
May
593,250
29,200
June
624,000
36,040
Required -
1. Using the high-low method, compute the variable rate for overhead per labour hour.
2. Using the high-low method, compute the fixed cost.
3. What is the cost formula?
4. Using the cost formula from (C), estimate the overhead cost for 42,800 labour hours.
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