Question
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period. Machine Hours Manufacturing Overhead April 80,000 $
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period.
| Machine Hours | Manufacturing Overhead | |
|---|---|---|
| April | 80,000 | $ 181,000 |
| May | 60,000 | $ 164,000 |
| June | 110,000 | $ 260,000 |
| July | 106,000 | $ 192,000 |
Using the high-low method, compute the fixed element of Olsen's monthly overhead cost.
Multiple Choice
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$84,000
-
$72,800
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$106,500
-
$96,000
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Managerial Accounting
Authors: Ronald W Hilton
7th Edition
0073022853, 978-0073022857
