Question
Harbour Inc. collected the following data for the first six months of the year concerning its overhead costs and machine hours used. Month Overhead Costs
Harbour Inc. collected the following data for the first six months of the year concerning its overhead costs and machine hours used.
Month
Overhead Costs ($)
Machine Hours
Jan
$62,000
400
Feb
52,000
320
Mar
64,000
395
Apr
58,000
350
May
57,000
350
June
54,000
325
Why is the high-low method inferior to the regression estimation method (provide 1 reason only)?
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
23rd edition
1337794759, 978-1337794756
