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CH Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with
CH 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 Overhead Costs 1 715 1,362 $ 102,709 2 705 1,402 3 685 103,875 1,513 109,957 4 730 1,462 108,232 5 785 1,600 116, 158 6 760 1,578 114,400 7 745 1,390 107,035 8 730 1,316 102,071 9 705 1,462 106,428 10 785 1,541 113,048 11 680 1,284 98, 374 12 705 1,606 110,771 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 1,700 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? 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 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.) Variable cost (per machine hour) Fixed cost CA Required) 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 1,700 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 1,700 machine-hours next year. What are the estimated monthly overhead costs, assuming no Inflation? Overhead costs
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