Noble Inc.documented the number of units produced as well as maintenance costs for the past five months as follows:
$$\begin{array} { l c c }
& \text { Number af units } & \text { Total overhead costs } \
\hline \text { October } & 120 \text { a00 } & \$ 6200 \
\text { Navember } & 180000 & 10000 \
\text { December } & 100000 & 6000 \
\text { January } & 110000 & 8000 \
\text { February } & 135000 & 9000
\end{array}$$
Noble uses the high/low method of estimating mixed costs.
Required:
A. What is the equation to predict estimated total overhead costs?
B. If the company expects to produce 150000 units in March, what will be the estimated total overhead costs?

Question

Noble Inc.documented the number of units produced as well as maintenance costs for the past five months as follows:
$$\begin{array} { l c c } 
& \text { Number af units } & \text { Total overhead costs } \
\hline \text { October } & 120 \text { a00 } & \$ 6200 \
\text { Navember } & 180000 & 10000 \
\text { December } & 100000 & 6000 \
\text { January } & 110000 & 8000 \
\text { February } & 135000 & 9000
\end{array}$$ 
Noble uses the high/low method of estimating mixed costs.
Required:
 A. What is the equation to predict estimated total overhead costs?
B. If the company expects to produce 150000 units in March, what will be the estimated total overhead costs?

Quizplus · Accepted Answer

The Answer of Noble Inc.documented the number of units produced as well as maintenance costs for the past five months as follows:
$$\begin{array} { l c c } 
& \text { Number af units } & \text { Total overhead costs } \
\hline \text { October } & 120 \text { a00 } & \$ 6200 \
\text { Navember } & 180000 & 10000 \
\text { December } & 100000 & 6000 \
\text { January } & 110000 & 8000 \
\text { February } & 135000 & 9000
\end{array}$$ 
Noble uses the high/low method of estimating mixed costs.
Required:
 A. What is the equation to predict estimated total overhead costs?
B. If the company expects to produce 150000 units in March, what will be the estimated total overhead costs?

Noble IncDocumented the Number of Units Produced as Well as Maintenance