Question
The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when
The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when production is expected to be 260,000 units to meet the ending inventory requirements and sales of 265,000 units. Joy Co's budget analyst has the following actual data for the last three months. Month Production In Units Manufacturing Supplies March 240,000 $ 480,000 April 330,000 628,500 May 270,000 472,500 Using the high-low method to develop a cost estimating equation, the estimate of needed manufacturing supplies for July would be: $396,000. $437,250. $513,000. $429,000.
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