FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The  following  data  obtained  from  XYZ  Corporation  represent  the  total  overhead  cost  and  the  overhead working hours for the past ten weeks: 

 

 Period    Working-Hours    Overhead Costs 

1                  100                           12000 

2                   60                           22000 

3                   20                           10000 

4                  100                          33000 

5                    80                           20000 

6                    60                          16000 

7                    40                          14000 

8                   120                         40000 

9                    80                          22000 

10                   40                           11000 

 

Required 

1-   Plot the relationship between Working-Hours and overhead Costs 

2-   Use the high-low method to compute the cost function, relating working-hours and overhead costs 

3-   What is the increase in maintenance costs for each 1500 working-hours 

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