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Please show all the work and numbers used for calculations The manager of the main laboratory facility at MetroHealth Center is interested in being able
Please show all the work and numbers used for calculations
The manager of the main laboratory facility at MetroHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,100 lab tests are performed next month Let's begin by determining the formula that is used to calculate the variable cost (slope) Change in volume Variable cost (slope) Change in cost / Now determine the formula that is used to calculate the fixed cost component. Total operating cost Total variable cost Fixed cost = Use the high-low method to determine MetroHealth's operating cost equation. (Round the variable cost to the nearest cent.) 4.40 x$ 10,640 y $ Use the operating cost equation you determined above to predict total laboratory overhead if 3,100 lab tests are performed next month The total laboratory overhead at a volume of 3,100 lab tests is $ X Data Table 1 Total Laboratory Number of Lab Tests Month Performed Overhead Costs $27,200 3,200 January. $26,500 February. . 2,900 $30,300 March... 3,700 $32,600 April . . . 4,100 $30,000 ay.. 4,400 $19,000 June.. 1,900 $19,400 July. . 2,500 .. Print DoneStep by Step Solution
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