Question
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
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. Month Janitorial cost Labor 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. Round your answer to two decimal places. $ per labor hour 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. $
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