Question
Direct Labor hours Inspection Cost February 4,944 $59381 March 4875 $58767 April 4918 $59164 May 4937 $59299 June 4903 $59022 July 4943 $59363 August 4942
| Direct Labor hours | Inspection Cost | |
| February | 4,944 | $59381 |
| March | 4875 | $58767 |
| April | 4918 | $59164 |
| May | 4937 | $59299 |
| June | 4903 | $59022 |
| July | 4943 | $59363 |
| August | 4942 | $59342 |
| Septmeber | 4949 | $59409 |
| October | 4966 | $59565 |
The management of Greens Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following data:
Management believes that inspection cost is a mixed cost that depends on direct labor-hours.
a. What is Greens cost formula?
b. If Greens expects to incur 5,010 direct labor hours next month, what will the estimated inspection cost be using the high-low method?
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Managing Component Based Development In Global Teams
Authors: J. Kotlarsky, I. Oshri
2009 Edition
0230222447, 978-0230201101
