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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:

Month Labor Hours Overhead Costs
January 3,500 $64,870
February 3,020 62,500
March 3,170 63,000
April 4,340 65,900
May 4,620 67,100
June 5,520 73,800
July 6,570 74,700
August 7,500 79,900
September 7,600 81,300
October 4,600 74,000
November 3,290 67,400
December 6,710 73,900
Total 60,440 $848,370

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. 12.25 and all other answers to 0 decimal places, e.g. 5,275.)

Variable cost = $

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per labor hour
Fixed cost = $

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Angie has booked 3,200 labor hours for the coming month. How much overhead should she expect to incur? (Round variable cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Total cost = $

If Angie books one more catering job for the month, requiring 200 labor hours, how much additional overhead should she expect to incur? (Round variable cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Additional overhead = $

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