GB 519 RANK Let's Do This /gb519rank.com GB 519 RANK Let's Do This /gb519rank.com | Page 42

statements for the next fiscal year. To do so, the company
must
forecast its total overhead cost. The actual machine hours
and total
overhead cost are presented below for the past six months.
MONTH TOTAL O/H MACHINE HOURS
Jan $ 8,258 2,134
Feb 8,006 2,045
Mar 8,387 2,276
Apr 8,832 2,743
May 8,921 2,834
June 7,841 2,034
Using the high-low method, unit variable overhead cost is
calculated to be:
Student Answer: $1.35.
$1.15
$1.40.
$1.65.
$1.25.