Question
Wilson Company's activity for the first six months of the current year is as follows: Electrical Cost Machine Hours January $1,560 2,000 February $2,200 3,000
Wilson Company's activity for the first six months of the current year is as follows:
| Electrical Cost | Machine Hours |
January | $1,560 | 2,000 |
February | $2,200 | 3,000 |
March | $2,750 | 2,400 |
April | $1,520 | 1,900 |
May | $1,480 | 1,800 |
June | $1,600 | 2,100 |
Required to clearly answer all questions and show all work for full marks:
Using the high-low method, what is the variable cost per machine hour?
What is the fixed portion of the electrical cost each month?
Express the companys total overhead cost in the form of Y= a + bX
What total overhead would you expect to be incurred at an activity level of 3,500 machine hours?
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