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4 Shlemazel ufacturing company whose total factory overhead costs fluctuate somewhat from month to month according to the number of man-hours worked in its production
4 Shlemazel ufacturing company whose total factory overhead costs fluctuate somewhat from month to month according to the number of man-hours worked in its production facility. These costs for the last four months in 2016 are given below Man-hours Total factory overhead 94,000 100,000 September 6,500 November December 10.000 99,000 The factory overhead costs above consist ofindirect labor,'rentmaintenance.)arnd utilities) The company has analyzed these costs at the following man-hours level of activity as follows 5000 Indirect labor (variable) Rent (fixed) Maintenance Utilites (mixed) Total factory overhead costs 40000 2,500 16.500 06 2 maintenance and utilities cost Assume that all data are within the relevant range, using the high-low method how much that you would expect the company to incur at an operating level of 7,500 man-hours? (Round to the neare 51,800 51,000 53,900 E. None of the above
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