Question
The following selected data were taken from the accounting records of Schein Industrial Manufacturing: Month Machine hours Manufacturing Overhead May 46,000 890,000 June 60,000 1,150,000
The following selected data were taken from the accounting records of Schein Industrial Manufacturing:
Month | Machine hours | Manufacturing Overhead |
May | 46,000 | 890,000 |
June | 60,000 | 1,150,000 |
July | 70,000 | 1,300,000 |
August | 55,000 | 950,000 |
Required:
What type of cost behavior is the high low method best suited to analyze?
By using the high-low method, calculate Schein's variable manufacturing overhead cost
Calculate the monthly fixed portion from b above.
Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing
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