Dundar Mifflin makes electronic products for the RCMP. The following data is for the first six months:

Direct Labor Hours Manufacturing Overhead

January 45,000 $295,000

February 59,600 $305,575

March 57,000 $323,000

April 58,000 $320,000

May 27,700 $158,400

June 29,000 $152,500

Required:

1. Use the high-low method to estimate the cost formula (3 marks)

2. Estimate the total overhead cost at an activity level of 43,000 machine hours, using the separate estimates you obtained for its components.

Bundar Mifflin makes electronic products for the RCMP. The following data is for the first six months: Direct Labor Hours 45,000 January 59,600 57,000 February March April May Manufacturing Overhead $295,000 $305,575 $323,000 $320,000 $158,400 58,000 27,700 June 29,000 $152.500 Required: 1. Use the high-low method to estimate the cost formula (3 marks) 2. Estimate the total overhead cost at an activity level of 43,000 machine hours, using the separate estimates you obtained for its components. (2 marks)