Figure
3-11.
The following four months of data were collected on utility cost
and the number of labor hours in a factory.
Utility |
Labor |
|
Month |
cost |
hours |
January |
$22,100 |
3,975 |
February |
24,600 |
5,430 |
March |
23,500 |
4,400 |
April |
20,140 |
3,200 |
Refer to Figure 3-11. Select the correct set of high and low months.
High - Low Method.
>> High Month : February.
>> Low month : April
>> Variable cost per unit = ( $ 24,600 - $ 20,140 ) / ( 5,430 - 3,200 ) = $ 2.
>> Fixed cost = $ 24,600 - ( 5,430 * $ 2 ) = $ 13,740.
Figure 3-11. The following four months of data were collected on utility cost and the number...
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