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 yearend holidays and light demand at other times angie has gathered the following cost information from the past year month labor hours overhead costs january 4000 64000 february 3300 61000 march 3400 62000 april 4500 66000 may 4800 69000 june 6000 73000 july 8300 82000 august 8000 79000 september 6900 74000 october 5000 70000 november 3600 64000 december 7000 75000 total 64800 839000

Activity Level $ High point 8,300 82,000 Low point 3,300 64 61,000 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 = $ 3.70 per labor hour Fixed cost = $ 47,140(b) X Your answer is incorrect. Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total cost = $ 62,680(c) X Your answer is incorrect. 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 = 1,295