Acc102 Principles of Managerial Accounting: Final Project - Paymore Inc

Acc102 Principles of Managerial Accounting
Final Project
The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2010: Machine Hours Mfg Overhead Cost February 6900 $6250 March 5000 $5375 April 6300 $6025 May 9333 $7975 June 6833 $6050

(a) Using the high-low method, compute the following: (1) The variable element of overhead cost per machine-hour: $____________________ per machine-hour (2) The fixed element of monthly overhead cost:$__________________
(b) Use the cost relationship determined in part a to estimate the total manufacturing overhead costs for July 2010, given that 7,250machine-hours are scheduled. $___________________
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