Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The CW22287 company uses direct labor-hours as its activity measure for overhead cost. Shown below are direct labor-hours and total overhead costs for the first

The CW22287 company uses direct labor-hours as its activity measure for overhead cost. Shown below are direct labor-hours and total overhead costs for the first half of the year:

Direct labor-Hours Overhead Cost
Jan 150,000 $ 339,000
Feb 140,000 $ 328,000
Mar 160,000 $ 350,000
Apr 110,000 $ 292,000
May 170,000 $ 362,500
Jun 200,000 $ 400,000

Assume that the relevant range includes all of the activity levels for the CW22287 company given in this problem.

If CW22287 expects to incur 178,000 direct labor hours next month, what will the estimated total overhead cost be using the high-low method? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $374,800

  • $372,600

  • $374,100

  • $373,600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

16th Edition

007352686X, 978-0073526867

More Books

Students also viewed these Accounting questions

Question

3. Contrast relational contexts in organizations

Answered: 1 week ago

Question

2. Describe ways in which organizational culture is communicated

Answered: 1 week ago

Question

1. Describe and compare approaches to managing an organization

Answered: 1 week ago