Professional Labor hours |
Cost | |
High-level | 8500 | 577000 |
Low-level | 3560 | 330000 |
Difference | 4940 | 247000 |
Estimated variable order-filling cost per order = 247000/4940 = $50 | ||
Fixed cost = 577000-(8500*50)= $152000 | ||
Total cost for 4800 customer order = 152000+(4800*50)= $392000 |
Fred Daley Co. applied the high-low method of cost estimation to professional labor hours billed to...