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A manufacturing company is analyzing the costs of its production. The cost data and activity level for the past 15 month are given below: Additionally,
A manufacturing company is analyzing the costs of its production. The cost data and activity level for the past 15 month are given below: Additionally, the following total costs for the past 15 months are provided If total costs of completing production runs are expected to increase by 10% and the total fixed costs are expected to increase by 6%. For next month, what is the cost per unit for (i) machine hours (ii) production run Use the high-low method to estimate next month's production overhead costs, assuming the company is planning to run 2600 machine hours. Use the high-low method to estimate next month's production overhead costs, assuming the company is planning to complete 380 runs. Prepare a scattergraph showing the production overhead costs plotted against production in units machine hours. Prepare a scattergraph showing the production overhead costs plotted against the monthly production runs
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