Wimmer's Storage Ran Its Freezer in February, a Slow Month

question 142

Essay

Wimmer's Storage ran its freezer in February, a slow month, for 360 hours for a total cost of $57,600.In July, a peak month, the freezer ran for 720 hours for a total cost of $82,080.Required:
a.Using the high-low method, determine the overhead cost equation for the department if hours of freezer use are used as the cost driver?
b.What is the estimated total cost at an operating level of 500 hours?

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Definitions:

Election of 1916

The presidential election in the United States in which Woodrow Wilson was re-elected, largely focusing on issues of American neutrality in World War I.

Charles Evans Hughes

An influential American statesman, Supreme Court Justice, and Secretary of State who served in the early 20th century, known for his contributions to law and diplomacy.

Alice Paul

A pioneering American suffragist and activist who played a key role in the campaign for women's suffrage resulting in the 19th Amendment to the U.S. Constitution.

Federal Government

The national government of a federal country, which shares power with the states or provinces but has the final authority over them in many areas.