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EXAMPLE%20chapter%205 - 241,500 Indirect labor 79,000...

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EXAMPLE: The Saluki Company is a manufacturing company whose total overhead cost is a mixed cost. Changes in overhead costs seem to be caused by changes in the machine hours worked. Total overhead costs for the high year’s high activity and the low year’s activity are shown below: Machine hours 40,000 70,000 Property taxes $ 80,000 $ 80,000 Indirect materials 138,000
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Unformatted text preview: 241,500 Indirect labor 79,000 113,500 Total overhead costs $ 297,000 $435,000 REQUIRED: A. Determine the cost behavior of: property taxes indirect materials indirect labor B. Prepare the cost formula for the mixed cost and for total overhead cost using the high-low method. C. Estimate the Total overhead cost if 58,000 machine hours are worked....
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