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GME Inc. uses the high-low method to estimate total labor cost, which is a mixed cost. Data for the most recently completed period are provided

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GME Inc. uses the high-low method to estimate total labor cost, which is a mixed cost. Data for the most recently completed period are provided below: Machine hours Labor costs 400 $20,000 Highest observation of cost driver Lowest observation of cost driver 240 $13,600 What is estimated total labor cost for the coming period if the firm expects to use 300 machine hours in the coming period? $4,000 $8,000 O $12,000 O $16,000 None of the above The method of least squares (regression) was used to develop a cost function that uses machine hours to predict the cost of total manufacturing overhead each month. The following regression output is available: Intercept 155,200.35 X Variable 195.7 1 What is the dependent variable in the regression function for manufacturing overhead? Variable MOH cost per machine hour Total manufacturing overhead cost Total fixed MOH cost The number of machine hours used in the period O None of the above SPLK Technology produces fitness watches. The company uses labor hours to forecast total manufacturing overhead (MOH) cost, which is a mixed cost. Data for the past three months are as follows: MOH Labor cost hours June $5,000 350 July $3,000 320 August $4,000 315 The results of a regression analysis of the data are as follows: Intercept 2,100 Variable 8.0 1 Using the regression results, estimate total manufacturing overhead cost at SPLK in a period when the company expects to use 345 labor hours. $4,560 $4.705 O $3,805 $4,860 None of the above Within the relevant range, fixed costs: O are constant on a per unit basis as output changes decrease in total as output decreases o increase in total as output increases O are used as the basis for performance measurement because they are often more controllable by managers None of the above

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