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The management of Harrigill Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following
The management of Harrigill Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following data: |
Direct Labor-Hours | Inspection Cost | |||||
March | 5,708 | $ 55,200 | ||||
April | 5,698 | $ 55,083 | ||||
May | 5,737 | $ 55,133 | ||||
June | 5,731 | $ 55,018 | ||||
July | 5,691 | $ 54,804 | ||||
August | 5,650 | $ 54,579 | ||||
September | 5,748 | $ 55,594 | ||||
October | 5,696 | $ 55,094 | ||||
November | 5,284 | $ 52,900 | ||||
Management believes that inspection cost is a mixed cost that depends on direct labor-hours. |
Required: |
Estimate the variable cost per direct labor-hour and the fixed cost per month using the high-low method.(Do not round intermediate calculations. Round your final answers to two decimal places.) |
Variable cost per direct labor-hour | $ |
Fixed cost per month | $ |
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