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I need solution for Part C please!! Part C (1.5 Marks) At a recent meeting of Ali Boulay Company's management, the controller produced the following
I need solution for Part C please!!
Part C (1.5 Marks) At a recent meeting of Ali Boulay Company's management, the controller produced the following information relative to factory overhead costs over the last 6 months. The production manager indicated that based on information from sales, Ali Boulay will produce 1,250 units of its flagship product next month, and that each unit would require 12 minutes of machine time. The production manager further asked if the controller could tell the meeting what overhead costs would be if 1,250 units are produced. The controller indicated that at the meeting he could only give an estimate of overhead cost using a simple high-low method of cost estimation and that he would provide a more precise cost estimate after the meeting. Month January February March April May June Machine Hours Total Factory Overhead 160 $5,760 210 6,930 240 7,560 180 6,210 200 6,800 170 6,040 Required a. Using the high-low method of separating a mixed cost into its fixed and variable components, what was the estimated variable factory overhead cost per machine hour? (.5 mark) II b. Using the high-low method, develop a cost function for monthly total factory overhead costs. (.5 mark) c. Again using the high-low method, estimate factory overhead costs for next month when 1,250 units of the company's products will be produced. (.5 mark) ... Question One ContinuedStep by Step Solution
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