Ontario Iron Fabricators makes metal pipes for building. The company's accountant likes to estimate overhead...
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Ontario Iron Fabricators makes metal pipes for building. The company's accountant likes to estimate overhead costs for the year 2022. To help him understand how costs behave in the company's manufacturing process he wants to separate foed from variable costs. Data for the past six months are as follows: Month Overhead Cost Machine Hours January $115,220 4485 February 104,880 1420 March 107 320 426 April 120,570 520 May 124,380 540 Jure 117.900 562 Required (round to 2 decimal places): A. Using the high low method, calculate the fixed cost component of overhead and the variable rate per machine hour. B. What would be the cost formula that can be used to calculate total overhead cost? C. Assume that 700 hours of machine hours are likely to be used in the month, what would be the total overhead cost based on the above calculations
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