Using the high-low method, compute (1) variable cost per direct labor hour and (2) the fixed cost…
Galliano Company has accumulated the following information pertaining to maintenance costs for the last eight months.
Direct
Maintenance
Month
Labor Hours
of
January
2:800
15,000
February
1,000
7,000
March
2,500
13,000
April
4,000
22,000
May
3,000
18,000
June
3,500
19,000
July
1,500
8,000
August
2,000
10,000
Instructions
Using the high-low method, compute (1) variable cost per direct labor hour and (2) the fixed cost per month.