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Use the information below to answer the following two questions: Melville Inc. is a manufacturing company whose total manufacturing overhead ( MOH ) costs fluctuate
Use the information below to answer the following two questions:
Melville Inc. is a manufacturing company whose total manufacturing overhead MOH costs fluctuate somewhat from month to month according to the number of machinehours worked in its production facility. These costs for the last four months are given below.
tableMachinehours,Total MOHOctober$November$December$January$
The manufacturing overhead costs above consist of rent, indirect materials, and utilities. The company has analyzed these costs at the machinehours level of activity as follows:
tabletableRent fixedIndirect Materials variableUtilities mixedTotal factory overhead costs$
Melville expects that it will work for machinehours in February. Using the highlow method, how much is the estimated utilities cost in February? Round to the nearest dollars.
tableA$
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