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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 1 2 3 4 5 6 Labor-Hours 725 720 678 740 775 760 735 730 720 BBS 675 715 Machine-Hours 1,347 1,412 1,512 1,462 1,581 1,575 1,398 1,312 1,444 1,544 1,294 1,614 Overhead Costs $ 102,740 103,852 109,878 108,386 116, 117 114,577 106,951 102,676 106,435 113, 129 97,470 109,470 9 10 11 12 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 1.400 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. (Round "Variable cost" answer to 2 decimal places.) Vatlable cont (per machine hour) Ecod cost 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 1 2 3 4 6 2 0 9 10 11 12 Labor Hours 725 720 670 740 775 760 735 730 720 tos 675 715 Machine Hours 1,347 1,412 1,512 1,462 1,581 1,575 1,390 1,312 1.444 1.544 1.294 1.614 Overhead Costs $ 102,740 103,852 109,878 100,300 116, 117 114,527 106,951 102,070 106,435 113,129 97,470 109,470 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on nnchine hours. b. Managers expect the plant to operate at a monthly average of 1.400 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 Heated Managers expect the plant to operate at a monthly average of 1,400 machine hours next year. What are the estimated mohly overhead costs, assuming rio Inflation? Dreibad

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