Question
Thompson Refrigerators Inc. needs to prepare pro forma financial statements for the upcoming fiscal year. To do this, the company must forecast its total overhead
Thompson Refrigerators Inc. needs to prepare pro forma financial statements for the upcoming fiscal year. To do this, the company must forecast its total overhead costs. Below are the actual machine hours and total overhead costs for the last six months.
| Mes | Total overhead | machine hours |
| Ene. | $8,258 | 2,134 |
| Feb. | 8,006 | 2,045 |
| Mar. | 8,387 | 2,276 |
| Abr. | 8,832 | 2,743 |
| Mayo | 8,921 | 2,834 |
| June | 7,841 | 2,034 |
Using the high-low method, calculate the unit variable overhead cost.
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
