Estimate the total overhead cost at an activity level

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Reference no: EM132510918

Based on the following for the first six months:

                               Direct Labor Hours                    Manufacturing Overhead

July                       45,000                             $295,000

August               60,000                                $320,000

September           57,000                            $323,000

October              52,000                             $247,250

November           34,000                            $178,200

December             25,000                         $162,500

Required:

Question 1. Use the high-low method to estimate the cost formula

Question 2. Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.

Reference no: EM132510918

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