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Find the total overhead cost at an activity level

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Reference no: EM132528203

Dundar Mifflin makes electronic product for the RCMP. The following data is for the first six months:

                                  Direct Labor Hours                    Manufacturing Overhead

January                        45,000                             $295,000

February                       60,000                            $320,000

March                           57,000                              $323,000

April                              52,000                               $247,250

May                                34,000                              $178,200

June                                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: EM132528203

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