4. The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for 2008:

If Shapely expects to use 10,000 machine hours next month, what are the estimated direct labor costs?

A. $160,000

B. $180,000

C. $175,000

D. $150,000

E. some other answer _______________.

Given the following information, compute the total number of units for the period.

Direct labor hours 12,000

direct labor cost $2.70 per hour

Direct materials cost $75 per unit

total manufactring cost $132, 600

fixed overhead cost $36, 000

variable overhead cost 50% of total labor cost

A. 360

B. 432

C. 640

D. 840

If Shapely expects to use 10,000 machine hours next month, what are the estimated direct labor costs?

A. $160,000

B. $180,000

C. $175,000

D. $150,000

E. some other answer _______________.

Given the following information, compute the total number of units for the period.

Direct labor hours 12,000

direct labor cost $2.70 per hour

Direct materials cost $75 per unit

total manufactring cost $132, 600

fixed overhead cost $36, 000

variable overhead cost 50% of total labor cost

A. 360

B. 432

C. 640

D. 840

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