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A company has the following financial information: year Labour (in hours) machine costs (in $) 2009 1,200 103,266 2010 1,225 110,216 2011 1,100 97,579 2012
A company has the following financial information:
| year | Labour (in hours) | machine costs (in $) |
| 2009 | 1,200 | 103,266 |
| 2010 | 1,225 | 110,216 |
| 2011 | 1,100 | 97,579 |
| 2012 | 1,050 | 94,581 |
| 2013 | 1,160 | 111,762 |
| 2014 | 1,200 | 115,786 |
| 2015 | 1,350 | 136,476 |
| 2016 | 1,380 | 141,852 |
| 2017 | 1,250 | 128,679 |
| 2018 | 1,270 | 135,334 |
| 2019 | 1,220 | 132,222 |
Required
Using the high-low method, what are the estimated machine costs
- if there are 1,100 Labour hours?
- if there are zero Labour hours?
- What is a significant drawback to using the High-low method to calculate costs at zero labour hours?
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