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Total Overhead Cost - Management Accounting

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The production manager has provided you with the following information for varying levels of production:

Volume level in direct labor hours Total overhead cost
30,000 $340,000
40,000 400,000
50,000 435,000
60,000 477,000
70,000 ?
80,000 587,000
90,000 636,400

What is the total overhead cost at 70,000 direct labor hours?

a. $479,233
b. $522,667
c. $530,133
d. $532,000
e. $537,600

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Solution Summary

The solution total overhead cost when varying levels of production are given. Management accounting for total overhead costs are provided.

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The answer is 'e'

By using high low method we have,

Variable Cost per ...

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