Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

The following information is available regarding the total manufacturing overhead of Molsen Company for a recent four-month period. Molsen's projected August operations will require approximately 110,000 machine hours. Using the high-low method, compute total manufacturing overhead estimated for August. Group of answer choices $177,500. $187,500. $197,500. $198,000.

Sagot :

abiolataiwo2015

Answer:

$198,000

Explanation:

Calculation to determine what the total manufacturing overhead estimated for August is

First step is to calculate the Variable element

Variable element=($198,000 - $153,000)/(110,000 - 80,000)

Variable element=$45,000/30,000

Variable element= $1.50

Second step is to calculate the Fixed element

Fixed element=$198,000 - ($1.50 x 110,000)

Fixed element=$198,000-$165,000

Fixed element = $33,000

Now let compute total manufacturing overhead

Total manufacturing overhead=$33,000 + ($1.50 x 110,000)

Total manufacturing overhead=$33,000+$165,000

Total manufacturing overhead= $198,000

Therefore Using the high-low method, compute total manufacturing overhead estimated for August is $198,000

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.