Ginsburg and Company provide you with the following data:

Required:
a. Use the high-low method to estimate Ginsburg’s monthly fixed supervision cost and the cost per labor hour. (i.e., assume Ginsburg uses labor hours as its measure of activity).
b. Use the high-low method to estimate Ginsburg’s monthly fixed supervision cost and the cost per machine hour (i.e., assume Ginsburg uses machine hours as its measure of activity).
c. Which of the two estimates, the answer to question (a) or question (b), is likely to be more representative of actual cost behavior?
d. Why might a manager believe that neither equation is a good way to estimate supervisioncosts?

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Month anuar February March Supervision Cos Labor Hours Macne Hours 2,400 2,560 3,360 2,880 8,300 $27,500 $27,500 $32,540 $30,000 32,630 5,040 5,300 6,600 6,500 6,750 April Mav