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Developing and Using a Predetermined Overhead Rate: High - Low Cost Estimation pay overtime in some months and then lay employees off in others. She
Developing and Using a Predetermined Overhead Rate: HighLow Cost Estimation
pay overtime in some months and then lay employees off in others." She commented, "While there are natural variations in customer demand, the accounting system seems to amplify this variation."
b Assume that the Mattoon Components Company had the following total manufacturing overhead costs and direct labor hours in and :
Use the highlow method to develop a cost estimating equation for total manufacturing overhead.
Total costs q
$
c Develop a predetermined rate for assuming direct labor hours are budgeted for
Round answers to two decimal places.
per direct labor hour
d Assume that the actual level of activity in was direct labor hours and that the total manufacturing overhead was $ Determine the underapplied or overapplied manufacturing overhead at the end of
Do not use a negative sign with your answer.
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