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The following information is available regarding the total manufacturing overhead of Olaf Company for a recent four-month period. Machine Hours Mfg. Overhead April 70,000 $
The following information is available regarding the total manufacturing overhead of Olaf Company for a recent four-month period.
| Machine Hours | Mfg. Overhead | ||||
| April | 70,000 | $ | 176,000 | ||
| May | 50,000 | $ | 159,000 | ||
| June | 105,000 | $ | 219,500 | ||
| July | 101,000 | $ | 187,000 | ||
Using the high-low method, compute the variable element of manufacturing overhead cost per machine hour.
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$2.27 per machine hour
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$1.10 per machine hour
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$.35 per machine hour
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$1.24 per machine hour
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