Using the high-low points method for indirect labor costs at different levels of activity. The following data
Question:
Using the high-low points method for indirect labor costs at different levels of activity. The following data involve the direct labor hours worked and indirect labor costs for the Mixing Department of the Glenwood Company for each quarter of -19X1.
Instructions 1. Using the high-low points method, compute the variable rate per direct labor hour and the fixed cost per month for indirect labor. Show your computations.
2. In the first quarter of 19X2, 12,800 direct labor hours were worked in the Mixing Department. Compute the expected indirect labor costs for the quarter.
3. In the first quarter of 19X2, the indirect labor costs in the Mixing Department were $27,100. Does this show that indirect labor costs were well controlled? |
Explain.
Step by Step Answer:
Cost Accounting Principles And Applications
ISBN: 9780070081529
5th Edition
Authors: Horace R. Brock