The management of harrigill corporation would like to have
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
5,650
$ 54,600
April
5,641
$ 54,473
May
5,679
$ 54,575
June
5,673
$ 54,461
July
5,633
$ 54,246
August
5,593
$ 54,028
September
5,690
$ 54,979
October
5,639
$ 54,484
November
5,256
$ 52,493
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
Expected delivery within 24 Hours
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