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the following information pertains to manufacturing costs and direct labor hour. Given the information, what is...

the following information pertains to manufacturing costs and direct labor hour. Given the information, what is variable cost per unit of the cost function? month total costs direct LH Jan 4000 360 Feb 3,989 327 Mar 4100 375 April 4500 400 May 4400 405 June 4,387 449 July 4450 425

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Expert Solution

Month Total costs Direct LH
Jan $       4,000 360
Feb $       3,989 327
Mar $       4,100 375
April $       4,500 400
May $       4,400 405
June $       4,387 449
July $       4,450 425
As per High-Low method,
Variable cost per unit = (H-L)/(A-B) Where,
= (4387-3989)/(449-327) H Total costs at highest level of activity $    4,387
= $       3.26 L Total costs at lowest level of activity $    3,989
A Highest level of activity 449
B Lowest level of activity 327

ekkarill92 answered 2 years ago
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