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Question Detroit Tigers manufactures baseball bats. The controller wants to calculate the fixed and variable costs associated with janitorial services incurred. Data for the past

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Question Detroit Tigers manufactures baseball bats. The controller wants to calculate the fixed and variable costs associated with janitorial services incurred. Data for the past six months were collected. Month Janitorial Cost Labour Hours January 9,200 10,120 February 8.800 9,500 March 3,380 3.690 Apri 9,620 11, 100 May 8,400 3,680 June 9,700 10.650 Required: a) Using the High-Low method, calculate the variable cost per labour hour. 0.50 Month Janitorial Cost Labour Hours July 5 24,000 10,800 August 21,200 9,200 September 9,350 10.500 Suppose that the variable cost for the above data (b) was $2 00 per labour hour, calculate the fixed costs. $ 2,800 C) For each of the lettered items, choose the appropriate classifications for a manufacturing company. If in doubt about whether the cost behaviour is basically variable or fixed, decide on the basis of whether the total cost will fluctuate substantially over a wide range of volume (S) Selling / Administrative cost (F ) Fixed (D ) Manufacturing costs, direct (VI Variable Manufacturing costs, indirect (M) Mixed (6 marks ) S (or) D (or) I F lor) V (or) M 1) Supervisory salaries, factory F 2) Salespersons' commissions S V 3) Wood for finished product D V

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