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Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the

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Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours Machine-Hours 1 735 1,361 2 710 1,417 3 685 1,516 4 735 1,458 5 780 1,595 6 750 1,582 7 735 1,387 8 730 1, 302 9 705 1,447 10 800 1,555 11 680 1, 294 12 700 1,606 Overhead Costs $ 102,730 103,866 109,809 108,329 116,190 114,509 107,024 102,042 106,404 113,194 101,921 114,869 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 1,500 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 B Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (R "Variable cost" answer to 2 decimal places.) Variable cost (per machine hour) Fixed cost $ $ 43.52 44,976 Required B > Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours Machine-Hours 1 735 1,361 2 710 1,417 3 685 1,516 4 735 1,458 5 780 1,595 6 750 1,582 7 735 1,387 8 730 1,302 9 705 1,447 10 800 1,555 11 680 1,294 12 700 1,606 Overhead Costs $ 102,730 103,866 109,809 108,329 116,190 114,509 107,024 102,042 106,404 113,194 101,921 114,869 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 1,500 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 B Managers expect the plant to operate at a monthly average of 1,500 machine-hours next year. What are the estima monthly overhead costs, assuming no inflation? Overhead costs $ 110,256

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