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Yummy Catering uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,200 when 890 hours
Yummy Catering uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,200 when 890 hours were worked and $27,500 when 990 hours were worked. If Yummy Catering has 915 hours scheduled for next month, what is the expected total overhead cost for next month? Use the high-low method to determine the variable and fixed costs components of Yummy Catering's operating cost equation First identify the formula and calculate the variable cost component (slope). (Enter the variable cost per unit to the nearest cent) Change in costs $ 2,300 Change in volume 100 Variable cost per unit = $ 23.00 Next identify the formula and compute the fixed cost component (the vertical intercept) using the costs for the highest level of activity Variable cost per unit Total fixed costs
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