High-Low and Cost Formula Harrison Company has accumulated the following total manufacturing overhead costs for two levels of activity (within the relevant range): Low High Activity (direct labor hours) 80,000 120,000 Total manufacturing overhead $585,000 $755,000 The total overhead cost includes variable, fixed, and mixed costs. At 120,000 direct labor hours, the total cost breakdown is as follows: Variable cost $330,000 Fixed cost 200,000 Semi-mixed cost $225,000 a. Using the high-low method of cost analysis, determine the variable portion of the semi-variable cost per direct labor hour. Determine the total fixed cost component of the mixed cost. Isolate mixed costs: Do not use negative signs with your answers. Low High Total cost Less: Variable cost Fixed cost Total mixed cost $ High-Low Analysis: Round variable portion per unit to two decimal places, if applicable. Direct Labor Hours Total Mixed Cost - Variable Portion = Fixed Portion High 0 $ 0 - $ 0 - $ 0 Low 0 Difference 0 $ 0 0 0 0 Variable portion per unit: $ 0 b. What should the total planned overhead cost be at 100,000 direct labor hours? Variable Cost Per Unit Fixed Costs Variable cost $ $ 0 Fixed cost $ 0 Mixed: 0 Variable portion Fixed portion Totals: 0 0 $ 0 Total planned overhead for 100,000 direct labor hours $ 0 Check