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The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor
The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:
| Machine Hours | Direct Labor costs | |||
| Busiest month(June) | 11,250 | $ | 350,000 | |
| Slowest month (December) | 6,250 | $ | 270,000 | |
| If Shapely expects to use 8,500 machine hours next month, what are the estimated direct labor costs? |
$306,000.
$208,857.
$471,155.
$216,000.
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CIA Part 3 Business Knowledge For Internal Auditing 2022
Authors: MUHAMMAD ZAIN
1st Edition
B09PM77HSC, 979-8794979688
