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			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				$646,710

(a)

Identify 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 cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g. 5,275.)

Variable cost	=
Fixed cost

(b)

Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur?

Total cost =

(c)

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 =