Jim Lucky, CPA, is the owner of a firm that provides payroll support services. The firm charges 40$ per payroll return for the direct professional labor involved in preparing the payroll and submitting the required tax forms. In January, The firm prepared 50 such returns. In february, 100 and in march 70. Service overhead ( Telephone and utilities, Depreciation on equipment and building, tax forms, office supplies, and wages of clerical personnel) for january was 2,000. 3500 for february. and 2700 for march.

1. Using the high low method, determine the variable and fixed cost components of the firms service overhead account

2.What would the estimated total cost per tax return be if the firm prepares 80 payroll forms in april.