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Glacier Equipment Rental Company incurred the following costs and canoe rental hours during the following three months of the current year. Assume that the driver
Glacier Equipment Rental Company incurred the following costs and canoe rental hours during the following three months of the current year. Assume that the driver for all variable costs is canoe rental hours. Type of cost June July August Employee cost $40,000 $50,000 $45,000 Straight-line depreciation on building 10,000 10,000 10,000 Canoe maintenance 3,500 5,000 4,500 Building insurance 1,000 1,000 1,000 Canoe rental hours 750 1,000 900 Required: A. Using the high-low method, what is the estimate of unit variable cost? $ variable cost per canoe rental hour B. Using the high-low method, what is the estimate of total fixed cost? $ C. If Glacier expects to incur 800 machine hours in September, what would be the estimate of total cost using the high-low method? $
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