Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past six months were collected.

	Janitorial	Labor
Mouth	Cost	Hours
January	$9,200	10,120
February	8,800	9,500
March	9,350	10,500
April	9,620	11,100
May	8,400	8,660
June	9,400	10,650

Required:

A.Using the high-low method compute the variable rate of the janitorial cost.

B.Using the high-low method compute the fixed cost of janitorial services.

C.Compute the estimated janitorial cost to be incurred during the next six months assuming that 58,200 labor hours will be worked.