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