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The Thomas Company's total overhead costs at various levels of activity are presented below: Month Direct Labor Hours Total Overhead July 7,500 6,000 9,000
The Thomas Company's total overhead costs at various levels of activity are presented below: Month Direct Labor Hours Total Overhead July 7,500 6,000 9,000 10,500 $272,000 614 August September October 234,000 319,000 340,500 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 9,000 direct labor hour level of activity is as follows: Utilities (V) $137,700 Supervisory Salaries (F). 80,000 101,300 319,000 Maintenance (M) Required: (a.) Using the high-low method, determine the cost formula for maintenance. (b.) Express the company's total overhead costs in linear equation form. Essay Toolbar navigation B I U S = A
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