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High-low method Following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2010: Month/Machine-hours/Mfg. Overhead costs February/6,900/$6,250 March/5,000/$5,375 April/6,300/$6,025 May/9,333/$7,975 June/6,833/$6,050 A. Using the high-low method, compute the following:
1. The variable element of overhead cost per machine hour. 2. The fixed element of monthly overhead costs. B. Use the cost relationship determined in part 'a' to estimate the total manufacturig overhead costs for July 2010, given that 7,250 machine-hours are scheduled.
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