Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below:
Required: Using the high-low method,estimate the cost formula for manufacturing overhead.Assume that both direct material and direct labour are variable costs.Using your results,estimate the total manufacturing cost at a level of 12,000 units.

Question

Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below:  
Required: Using the high-low method,estimate the cost formula for manufacturing overhead.Assume that both direct material and direct labour are variable costs.Using your results,estimate the total manufacturing cost at a level of 12,000 units.

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The Answer of Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below:  
Required: Using the high-low method,estimate the cost formula for manufacturing overhead.Assume that both direct material and direct labour are variable costs.Using your results,estimate the total manufacturing cost at a level of 12,000 units.

Selected Data About Pitkin Company's Manufacturing Operations at Two Levels