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TB MC Qu. 5-46 The Macon Company uses the high-low... The Macon Company uses the high-low method to determine its cost equatiThane Company is interested in establishing the relatiorship between electricity costs and machine hours. Dat have been colecTB MC Qu. 5-83 Balcom Enterprises is planning to... Balcom Enterprises is planning to introduce a new product that will sell

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Answer #1

Answer :- If Macon expects to use 11,500 machine hours next month, the estimated direct labor costs are:-

VC per unit = $275,000 - $123,000 / 16,000 - 6,000

VC per unit = $15.2

FC = $123,000 - ( $15.2 *6,000)

FC = $31,800

Direct labor cost = ( $15.2 * 11,500) + $31,800

Direct labor cost = $206,600

So the correct answer is option B.( $206,600)

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