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.

---

Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.

Standard Deviation

A statistical measure of the dispersion or spread in a set of data, indicating how much variation exists from the average.

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific benchmark index.

PHStat

A software program that enhances Microsoft Excel with the capability to perform statistical analysis.