Prince Albert Company Makes Cross-Country Skis Required: A

Prince Albert Company makes cross-country skis.The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory.Data for the past six months were collected. $\begin{array}{lrr} & \text { Janitorial } & \text { Labour } \\\text { Month } & \text { cost } & \underline{\text { hours }}\\\text { January } & \$ 9,200 & 10,120 \\\text { February } & 8,800 & 9,500 \\\text { March } & 9,350 & 10,500 \\\text { April } & 9,620 & 11,100 \\\text { May } & 8,400 & 8,660 \\\text { June } & 9,400 & 10,650\end{array}$ Required: A. Using the high-low method, compute the variable rate of the janitorial cost.
B. Using the high-low method, compute the fixed cost of janitorial services.
C. Compute the estimated janitorial cost to be incurred during the next six months assuming that 58,200 labour hours will be worked.