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Tree Wood Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The company's management
Tree Wood Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The company's management wishes to explain variable overhead as a percentage of direct labor costs. Management has obtained the following cost data pertaining to the production of the small tables: Units Produced 300 400 1,000 600 100 Direct Labor Costs $3,200 $5,000 $8,000 $5,400 $2,400 What is the variable cost per unit using the high-low method? A. 0:44 B. 0.80 C.0.68 D.0.56 Overhead Costs $2,400 $2,600 $6,000 $2,800 $2,200
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