High-low method to estimate the cost equation

Reference no: EM13156131

The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the total estimated cost for 2,600 machine hours using the high-low method to estimate the cost equation?

a) $9,730

b) $9,606

c) $9,106

d) $8,788

Reference no: EM13156131

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