using the high low method compute 1 variable cost per direct labor hour and 2 the fi 608980
Galliano Company has accumulated the following information pertaining to maintenance costs for the last eight months.
|
Direct |
Maintenance |
|
|
Month |
Labor Hours |
of |
|
January |
2:800 |
15,000 |
|
February |
1,000 |
7,000 |
|
March |
2,500 |
13,000 |
|
April |
4,000 |
22,000 |
|
May |
3,000 |
18,000 |
|
June |
3,500 |
19,000 |
|
July |
1,500 |
8,000 |
|
August |
2,000 |
10,000 |
Instructions
Using the high-low method, compute (1) variable cost per direct labor hour and (2) the fixed cost per month.