[The Following Information Applies to the Questions Displayed Below

question 99

Multiple Choice

[The following information applies to the questions displayed below.]
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period.

-Olsen's projected August operations will require approximately 120,000 machine hours.Using the high-low method,compute total manufacturing overhead estimated for August.

• A)$165,000
• B)$187,500
• C)$197,500
• D)$213,000

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Definitions:

Supervisory Expense

Costs associated with managing and overseeing employees or departments, not directly tied to production or service delivery.

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Equipment Depreciation

The process of spreading out the cost of physical assets over their useful lives for accounting and tax purposes.

Supervisory Expense

Costs associated with the salaries and benefits of supervisory staff, including managers and team leaders.