Find what would be the estimated overhead cost

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Claire Co. makes motorcycles. Management wants to estimate overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months.

Question 1) Using the high-low method to estimate the fixed and variable portion of overhead costs based on machine hours

Question 2) If the plant is planning to operate at a level of 450 machine hours next period, what would be the estimated overhead cost?

Reference no: EM132561008

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