EXERCISE 5-12 (30 MINUTES)

4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
4. a. High-low method: Variable (22,500 DLH × $2.30 per DLH) . $51,750Fixed ... 41,500Total cost ... $93,250 b. Least-squares regression method: Variable (22,500 DLH × $2.15 per DLH) .. $48,375Fixed ... 39,859Total cost ... $88,234 c. Scattergraph method: Reading directly off the graph, total overhead cost at 22,500 DLH would be approximately $90,000.