Fixed overhead and the variable overhead rate

Reference no: EM13940520

The XYZ Tool Manufacturing Co. shows the following factory overhead costs at various levels of direct labor hours for the last four months:
Direct Labor
Factory
Month
Hours x
Overhead y
July
2,500 hours
$ 7,000
August
1,500
5,000
September
2,000
6,000
October
3,000
8,000
9,000 hours
$26,000
Determine the monthly fixed overhead and the variable overhead rate per direct labor hour (DLH) using (a) the scattergraph method and (b)the high-low method.

Reference no: EM13940520

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