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Table 4 gives you the information for the last six months on the manufacturing overhead cost and machine hours.Using the high/low method of cost estimation
- Table 4 gives you the information for the last six months on the manufacturing overhead cost and machine hours.Using the high/low method of cost estimation and this information, determine the fixed and variable portions of the manufacturing overhead cost.(You will need this information to complete Table 5). Machine hours have been determined as the best cost driver for manufacturing OH. It takes one machine hour to make 200 cases of cookies.
- Table 5 is where you will list all your production cost (DM, DL, MOH), separated into their fixed and variable components. Note this table wants variable cost per unit and annual fixed cost.
Table 4- Actual Overhead cost for the last six months Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Machine hours OH Cost 360 $26,020 200 $19,300 450 $29,800 500 $31,900 260 $21,820 380 $26,800 *200 cases produced per machine hour Complete any calculations here:
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