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: 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. Show your work! Round off all calculations to the nearest whole cent.

Question

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:  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. Show your work! Round off all calculations to the nearest whole cent.

Quizplus · Accepted Answer

The Answer of 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:  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. Show your work! Round off all calculations to the nearest whole cent.

The Management of Harrigill Corporation Would Like to Have a Better