Monthly overhead costs using the high-low method

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Reference no: EM13810336

The following data was obtained from the books of the Caldwell Home Painting Company:

Month --------------------Overhead Costs --------------------------Direct Labor Hours

January ---------------------$2,400 -----------------------------------------------600

February ---------------------3,750 ------------------------------------------------800

March -------------------------1,800------------------------------------------------- 500

April---------------------------- 3,900----------------------------------------------- 900

May ----------------------------1,100------------------------------------------------ 200

A. Compute the fixed and variable components of the monthly overhead costs using the high-low method.

B. Using the equation developed in (a) above. Project the overhead costs for the month of august if the direct costs for the month of august if direct labor hours are projected to be 1100 hours for that month.

Reference no: EM13810336

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