Question
An accountant has been monitoring the overall indirect service costs incurred at their company based on the number of labour hours worked. They accept that
An accountant has been monitoring the overall indirect service costs incurred at their company based on the number of labour hours worked. They accept that the costs follow a uniform, regular pattern so decide to use the High-Low method to calculate the Variable Costs and then the fixed costs. The have found the lowest hours worked was 2989 hours per month and the service costs associated with those hours was $13216. The highest hours recorded in a month was 4812 and in that month the service costs were $23946. Calculate the Variable Cost using the high-low method.
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