Patrick Ross,the president of Corise's Wild Game Company,has asked for information about the cost behavior 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:
$\begin{array}{lrr}\text { Month } & \text { Machine-hours } &\text { Qwerhead Costs }\
\text { February } & 1,870 & \$ 22,500 \
\text { March } & 3,080 & 24,475 \
\text { April } & 1,100 & 24,321 \
\text { May } & 2,750 & 23,650 \
\text { June } & 3,850 & 31,196
\end{array}$ Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.

Question

Patrick Ross,the president of Corise's Wild Game Company,has asked for information about the cost behavior 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:
 $\begin{array}{lrr}\text { Month } & \text { Machine-hours } &\text { Qwerhead Costs }\
\text { February } & 1,870 & \$ 22,500 \
\text { March } & 3,080 & 24,475 \
\text { April } & 1,100 & 24,321 \
\text { May } & 2,750 & 23,650 \
\text { June } & 3,850 & 31,196
\end{array}$ Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.

Quizplus · Accepted Answer

The Answer of Patrick Ross,the president of Corise's Wild Game Company,has asked for information about the cost behavior 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:
 $\begin{array}{lrr}\text { Month } & \text { Machine-hours } &\text { Qwerhead Costs }\
\text { February } & 1,870 & \$ 22,500 \
\text { March } & 3,080 & 24,475 \
\text { April } & 1,100 & 24,321 \
\text { May } & 2,750 & 23,650 \
\text { June } & 3,850 & 31,196
\end{array}$ Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.

Patrick Ross,the President of Corise's Wild Game Company,has Asked for Information