The Viking Company Has Provided the Following Information A Using the High- Low Method, Calculate the Total Fixed

question 73

Essay

The Viking Company has provided the following information: $\begin{array}{lll}& \text { Direct Factory } \\\text { Month } & \text { Overhead } & \underline{\text { Labor Hours }} \\\text { January } & \$ 92,095 & 4,600 \\\text { February } & 103,056 & 5,280 \\\text { March } & 83,802 & 3,760 \\\text { April } & 89,594 & 4,320 \\\text { May } & 105,694 & 5,720 \\\text { June } & 87,404 & 3,880\end{array}$ a. Using the high- low method, calculate the total fixed factory overhead cost and the variable factory overhead cost per direct labor hour.
b. Prepare the cost function.
c. What would the total factory overhead cost be at a level of 5,000 hours?

---

Definitions:

Kruskal-Wallis Test

A non-parametric statistical test used to compare three or more independent samples to determine if they come from the same distribution.

Wilcoxon Tests

A nonparametric statistical test used to compare two paired groups to assess whether their population mean ranks differ.

Assembly Time

The duration required to assemble a product or system from its components.

Blocked Experiment

An experimental design in which units are grouped (blocked) based on similar attributes before randomly assigning treatments within blocks to reduce variability and improve accuracy.