Galliano Company has accumulated the following information pertaining to maintenance costs for the last eight months.
| Direct Don't use plagiarized sources. Get Your Custom Essay on using the high low method compute 1 variable cost per direct labor hour and 2 the fi 608980 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | Maintenance | |
| Month | Labor Hours | of |
| January | 2:800 | 15,000 |
| February | 1,000 | 7,000 |
| March | 2,500 | 13,000 |
| April | 4,000 | 22,000 |
| May | 3,000 | 18,000 |
| June | 3,500 | 19,000 |
| July | 1,500 | 8,000 |
| August | 2,000 | 10,000 |
Instructions
Using the high-low method, compute (1) variable cost per direct labor hour and (2) the fixed cost per month.
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