Exhibit 21-2 The following cost data are available for Malta Marketing:

-Refer to Exhibit 21-2. Given the data above and using the high-low method of analysis, total variable costs are approximately:

Question

Exhibit 21-2 The following cost data are available for Malta Marketing:
 
-Refer to Exhibit 21-2. Given the data above and using the high-low method of analysis, total variable costs are approximately:

Quizplus · Accepted Answer

Total variable costs are $15,000 - $5,000 = $10,000. The high-low method of analysis shows that variable costs increase by $2 for each additional direct labor hour. Therefore, total variable costs are $10,000 / 5 = $2 per direct labor hour.

Exhibit 21-2 the Following Cost Data Are Available for Malta