High-Low and Cost Formula Harrison Company has accumulated the following total manufacturing overhead costs for two levels of activity (within the relevant range): Activity (direct labor hours) Total manufacturing overhead $484,000 $628,000 Low High 90,000 130,000 The total overhead cost includes variable, fixed, and mixed costs. At 130,000 direct labor hours, the total cost breakdown is as follows: Variable cost $286,000 Fixed cost 85,000 Semi-mixed cost $257,000 a. Using the high-low method of cost analysis, determine the variable portion of the semi-variable cost per direct labor hour. Determine the total fixed cost component of the mixe Isolate mixed costs: Do not use negative signs with your answers. Low High Total cost Less: Variable cost Fixed cost Total mixed cost $ $ 0 $ 0 0 0 $ 0 0 0 0
High-Low and Cost Formula Harrison Company has accumulated the following total manufacturing overhead costs for two levels of activity (within the relevant range): Activity (direct labor hours) Total manufacturing overhead $484,000 $628,000 Low High 90,000 130,000 The total overhead cost includes variable, fixed, and mixed costs. At 130,000 direct labor hours, the total cost breakdown is as follows: Variable cost $286,000 Fixed cost 85,000 Semi-mixed cost $257,000 a. Using the high-low method of cost analysis, determine the variable portion of the semi-variable cost per direct labor hour. Determine the total fixed cost component of the mixe Isolate mixed costs: Do not use negative signs with your answers. Low High Total cost Less: Variable cost Fixed cost Total mixed cost $ $ 0 $ 0 0 0 $ 0 0 0 0
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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