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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 2,500 $48,950 February 1,800 46,440 March 1,900 47,440 April 3,000 50,600 May 3,300 53,390 June 4,500 56,550 July 6,800 63,940 August 6,500 61,150 September 5.400 56,920 October 3,500 54,250 November 2,100 49,230 December 5,500 57,850 Total 46,800 $646,710Identify the high and low points. Activity Level High point Low point $ Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cos to 2 decimal places, e.g. 15.25 and fixed cost to O decimal places, e.g. 5,275.) Variable cost = $ per labor hour Fixed cost = $Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total cost = $If Angie books one more catering job for the month, requiring 350 labor hours, how much additional overhead should she expect to incur? Additional overhead = $
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