13. The management of Casablanca Manufacturing Corporation b…
13. The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months: Machine-Hours Overhead Cost Jan 150,000 $ 339,000 Feb 140,000 $ 328,000 Mar 160,000 $ 350,000 Apr 130,000 $ 319,500 May 170,000 $ 362,500 Jun 200,000 $ 400,000 Assume that the relevant range includes all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
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