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a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places. Omit the $ sign
a-2. Use the high-low method to determine the fixed element of monthly overhead cost. Hint: Due to the algorithmic nature of this problem, you must use the 'high' figures to obtain the correct answer. If we were using unrounded numbers on a standard problem, the fixed element could be obtained by using either the 'high' or the 'low' figures. (Round your intermediate calculations to 2 decimal places. Omit the $ sign in your response.)
b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. (Round your intermediate calculations to 2 decimal places. Omit the $ sign in your response.) Y = a +b x
c. Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over- or underestimated these costs? (Negative amounts should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Omit the $ sign in your response.) Y = a +bx
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Paul's Limo Service has the following information for June:
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