Mathematics, 18.01.2022 14:00 bryan334
Do-Over Incorporated recently obtained a short-term bank loan from City National Bank. The bank required that certain credit information and pro forma financial statements be maintained through the life of the loan. In order to prepare the pro forma statements, Do-Over must forecast total overhead cost. The actual machine hours and overhead cost are presented below for the past six months.
Month Overhead Cost Machine Hours
January $ 3,305 1,298
February 3,612 1,426
March 3,188 1,198
April 3,530 1,275
May 3,595 1,270
June 3,644 1,420
Using the high-low method, total monthly fixed overhead cost is calculated to be:
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Do-Over Incorporated recently obtained a short-term bank loan from City National Bank. The bank requ...
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