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Wilkinson Corporation uses the high-low method to estimate the fixed and variable cost elements of its total manufacturing overhead. The company uses direct labor hours
Wilkinson Corporation uses the high-low method to estimate the fixed and variable cost elements of its total manufacturing overhead. The company uses direct labor hours (DLH) as its activity base. In the current year, its highest month of activity was 3,200 DLH, with a corresponding total manufacturing overhead cost of $300,000. Its lowest month of activity was 1,700 DLH, with a corresponding total manufacturing overhead cost of $180,000. The company anticipates that it will use 2,500 DLH in January of the upcoming year. Use the high-low method to determine the following: 1. The variable manufacturing overhead cost per DLH is $ 3. The estimated total 2. The monthly fixed manufacturing overhead cost is $ manufacturing overhead cost in January of the upcoming year is $
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