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X Company's accountant uses the high-low method to determine the parameters of the company's monthly overhead cost function, with units produced as the independent variable.
X Company's accountant uses the high-low method to determine the parameters of the company's monthly overhead cost function, with units produced as the independent variable. She has the following past monthly observations to work with:
Units Produced | Cost |
6,400 | $30,924 |
7,950 | 34,914 |
7,400 | 34,569 |
9,000 | 37,164 |
7,050 | 32,174 |
8,550 | 35,864 |
X Company estimates that 10,500 units will be produced in July. What are estimated total overhead costs for July?
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