The management of Casablanca Manufacturing Corporation belie…
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 January 150,000 $339,000 February 140,000 $328,000 March 160,000 $350,000 April 130,000 $319,500 May 170,000 $362,500 June 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? PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR.
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