The Timber Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The company's management wishes to explain variable overhead as a percentage of direct labor costs. Management has obtained the following cost data pertaining to the production of the small tables:
Compute the fixed and variable components of the overhead costs using the high-low method.

Question

The Timber Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The company's management wishes to explain variable overhead as a percentage of direct labor costs. Management has obtained the following cost data pertaining to the production of the small tables:
  Compute the fixed and variable components of the overhead costs using the high-low method.

Quizplus · Accepted Answer

The Answer of The Timber Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The company's management wishes to explain variable overhead as a percentage of direct labor costs. Management has obtained the following cost data pertaining to the production of the small tables:
  Compute the fixed and variable components of the overhead costs using the high-low method.

The Timber Products Manufactures Small Tables