Question
Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the
Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year: Month Labor Hours Overhead Costs January 3,500 $75,000 February 2,800 70,000 March 3,000 71,000 April 4,200 78,000 May 4,500 82,000 June 5,500 89,000 July 6,500 93,000 August 7,500 99,000 September 7,800 102,500 October 4,500 83,000 November 3,100 74,000 December 6,500 92,000 Total 59,400 $1,008,500 Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)
Variable cost = $ per labor hour
Fixed cost = $
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