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Adriana Corporation manufactures football equipment. In planning for next year, the managers went to understand the relation between activity and overhead costs. Discussions with
Adriana Corporation manufactures football equipment. In planning for next year, the managers went to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to very with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor Hours Machine-Hours Overhead Costs $102,678 103,766 1 725 1, 355 2 720 1,404 3 675 3,524 109,848 4 730 1,455 108, 240 5 785 1,597 116,278 6 755 1,579 114, 493 7 745 1,382 107,082 B 735 1,311 102,192 9 715 1,450 106,335 10 805 1,553 113,036 11 665 12 710 1, 298 1,000 101, 339 113,894 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1700 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required Managers expect the plant to operate at a monthly average of 1,700 machine-hours next year. What are the estimated
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