Patrick Ross,the President of Corise's Wild Game Company,has Asked for Information

question 157

Essay

Patrick Ross,the president of Corise's Wild Game Company,has asked for information about the cost behavior 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:
$\begin{array}{lrr}\text { Month } & \text { Machine-hours } &\text { Qwerhead Costs }\\\text { February } & 1,870 & \$ 22,500 \\\text { March } & 3,080 & 24,475 \\\text { April } & 1,100 & 24,321 \\\text { May } & 2,750 & 23,650 \\\text { June } & 3,850 & 31,196\end{array}$ Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.

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Definitions:

Conflicts Of Interest

Situations where an individual's or organization's personal interests could potentially influence or appear to influence their decisions in their official capacity.

Supermajority Vote

A requirement that a motion must receive significantly more than a simple majority of votes, often two-thirds or three-quarters, to be approved.

Employee-Shareholder

An employee-shareholder is an employee who also holds shares in the company they work for, often benefiting from stock options or equity compensation plans.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.