Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has asked for information about the cost behaviour of manufacturing overhead costs.Specifically,he wants to know how much overhead cost is fixed and how much is variable.The following data are the only records available:
$$\begin{array} { l c c }
\text { Month } & \text { Machine-hours } & \text { Overhead Costs } \
\text { February } & 1700 & \$ 20500 \
\text { March } & 2800 & 22250 \
\text { April } & 1000 & 19950 \
\text { May } & 2500 & 21500 \
\text { June } & 3500 & 23950
\end{array}$$
Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.
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Question

Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has asked for information about the cost behaviour of manufacturing overhead costs.Specifically,he wants to know how much overhead cost is fixed and how much is variable.The following data are the only records available:
 $$\begin{array} { l c c } 
\text { Month } & \text { Machine-hours } & \text { Overhead Costs } \
\text { February } & 1700 & \$ 20500 \
\text { March } & 2800 & 22250 \
\text { April } & 1000 & 19950 \
\text { May } & 2500 & 21500 \
\text { June } & 3500 & 23950
\end{array}$$ 
Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has asked for information about the cost behaviour of manufacturing overhead costs.Specifically,he wants to know how much overhead cost is fixed and how much is variable.The following data are the only records available:
 $$\begin{array} { l c c } 
\text { Month } & \text { Machine-hours } & \text { Overhead Costs } \
\text { February } & 1700 & \$ 20500 \
\text { March } & 2800 & 22250 \
\text { April } & 1000 & 19950 \
\text { May } & 2500 & 21500 \
\text { June } & 3500 & 23950
\end{array}$$ 
Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has Asked for Information