Question
Waldorf Limited is a capital-intensive business that manufactures scuba tanks. Financial information for the last six months ending December 2019 reveals the following: Month Scuba
Waldorf Limited is a capital-intensive business that manufactures scuba tanks. Financial information for the last six months ending December 2019 reveals the following:
Month | Scuba tanks sold | Production overheads ($ thousands) |
July | 120 | 23.2 |
August | 100 | 21.1 |
September | 120 | 25.2 |
October | 140 | 26 |
November | 180 | 33.5 |
December | 160 | 31.7 |
Use the high-low method to answer the following:
Estimate the variable production overhead cost per scuba tank.
Estimate the fixed production overhead cost.
Estimate the total production overheads for January if the company expects sales of 210 scuba tanks in that month.
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