Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has Asked for Information

question 139

Essay

Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has asked for information about the cost behaviour of manufacturing overhead costs.Specifically,he wants to know how much overhead cost is fixed and how much is variable.The following data are the only records available:
$$\begin{array} { l c c } \text { Month } & \text { Machine-hours } & \text { Overhead Costs } \\\text { February } & 1700 & \$ 20500 \\\text { March } & 2800 & 22250 \\\text { April } & 1000 & 19950 \\\text { May } & 2500 & 21500 \\\text { June } & 3500 & 23950\end{array}$$
Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.
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Definitions:

Payoff Table

A matrix that represents the possible outcomes of different strategies, often used in decision-making and game theory.

Expected Monetary Value

A calculation in decision theory and statistics used to anticipate the potential monetary outcomes of different decisions.

Prior Probabilities

The probabilities of different outcomes or hypotheses before new evidence is considered.

Videography Business

A professional service focused on the production of video content for various events, advertisements, or creative projects.