Hartford Manufacturing uses the high$-$low method to estimate the fixed and variable cost elements of its total manufacturing overhead. The

company uses machine$-$hours $(MH)$ as its activity base. In the current year, its highest month of activity was $4,500MH,$ with a corresponding total

manufacturing overhead cost of $$800,000.$ Its lowest month of activity was $2,000MH,$ with a corresponding total manufacturing overhead cost of

$$360,000.$ The company anticipates that it will use $3,000MH$ in January of the upcoming year. Use the high$-$low method to determine the following:

The variable manufacturing overhead cost per $MH$ is $

The monthly fixed manufacturing overhead cost is $

Field $1$

The estimated total manufacturing overhead cost in January of the upcoming year is :

Correct Answer

Field $1$: $176$

Field $2$: $8,000$

Field $3$: $536,000$

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