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

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

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
variable overhead cost 50% of total labor cost
A. 360
B. 432
C. 640
D. 840

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