(TCO 3) The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed

for the Morton Plant for the month of July, when production is expected to be 470,000 units to meet the ending inventory requirements and sales of 475,000 units. Joy Co’s budget analyst has the following actual data for the last three months.

Estimated factory overhead costs $1,500,000

Actual Factory overhead costs $1,776,400

Estimated labor hours 48,000

Actual labor hours 51,700

Estimated labor costs $756,000

Actual labor costs $840,125

Estimated machine hours 96,000

Actual machine hours 102,600

Using the high-low method to develop a cost estimating equation, the estimate of the needed manufacturing supplies for July would be: 

$681,500.

$688,750.

$749,180.

$752,060.

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