Reference no: EM13764943
The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2012:
Hours 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 cost:
(B) Use the cost relationship determined in part (a) to estimate the total manufacturing overhead costs for July 2012, given that 7,250 machine-hours are scheduled.
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