High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities assodated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Forklift depreciation: 4,500 16,500 $1,600 1,600 Indirect labor: 4,500 $55,800 High Fuel and oil for forklift: Low 16,500 108,600 4,500 $3,015 11,055 16,500 Requird: If required, round your answers to two decimal places. Enter a " if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components Forklift depreciation: v s 955 PM Indirect labor: Fuel and oil for forklift: 2. Using your knowledge of cost behavior, predict the cost of each item for an activity output level of 10,000 moves Forklift depreciation Indirect labor Fuel and oil for forkdift 3. Construct a cost formula that can be used to predict the total cost of the three resources combined. If required, round your answers to two decimal Materials handling cost-s Using this formula, predict the total materials handling cost if activity output.is 10,000 moves. 56 PM Si