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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: Labor Overhead Month Hours Costs January 3,800 $62,300 February 3,100 59,090 March 3,200 60,090 April 4,300 64,450 May 4,600 67,540 June 5,800 71,900 July 8,100 81,590 August 7,800 78,500 September 6,700 73,170 October 4,800 68,600 November 3,400 62,180 December 6,800 74,200 Total 62,400 $823,610 Identify the high and low points. Activity Level High point Low point 7600 3021 +A +A 81300 $ 62500 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. 15.25 and fixed cost to O decimal places, e.g. 5,275.) Variable cost +A $ = $ +A Fixed cost 43593.02 per labor hour 100206.98
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