las oy the latest technologies and s to your through the l

? ? las oy the latest technologies and s to your through the life of the loan. In order to prepere the pro forma statements, Home Remodeling must forecest total ovorhead cost. The actual machine hours end overheed cost are presented below for the past six morths .315 O $249 O $3.40 O $2.06 O $2.60

Solution

Cost MH High Activity 3484 1394 Low activity 2996 1150 Change 488 244 Variable cost per unit: Change in cost/ Change in MH 488 / 244 = $ 2.00 per Mh Answer is $ 2.00