a = Fixed production costs per month = Variable production costs per direct labor hour = Number of months Direct labor hours per month Y = Total monthly production costs S = Summation Using the high-low method, what is the cost formula for estimating costs? Let ADEXYS b n X
a = Fixed production costs per month = Variable production costs per direct labor hour = Number of months Direct labor hours per month Y = Total monthly production costs S = Summation Using the high-low method, what is the cost formula for estimating costs? Let ADEXYS b n X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using high-low method, what is the cost formula for estimating costs?
![LFH Corporation manufactures and sells party items. The following representative direct labor
hours and production costs are provided for a four-month period:
Month
January
February
March
April
Total
Direct Labor Hours
3,600
4,800
6,000
4,800
19,200
Production Costs
P15,000
17,500
20,000
17,500
P70.000
Let a = Fixed production costs per month
b = Variable production costs per direct labor hour
= Number of months
n
X = Direct labor hours per month
Y = Total monthly production costs
S = Summation
Using the high-low method, what is the cost formula for estimating costs?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdabb786e-ccd7-457b-b377-60abf5e17661%2F1e0dfa6d-144c-442b-9c82-250ebc3c1e1e%2Fv6uuur6_processed.png&w=3840&q=75)
Transcribed Image Text:LFH Corporation manufactures and sells party items. The following representative direct labor
hours and production costs are provided for a four-month period:
Month
January
February
March
April
Total
Direct Labor Hours
3,600
4,800
6,000
4,800
19,200
Production Costs
P15,000
17,500
20,000
17,500
P70.000
Let a = Fixed production costs per month
b = Variable production costs per direct labor hour
= Number of months
n
X = Direct labor hours per month
Y = Total monthly production costs
S = Summation
Using the high-low method, what is the cost formula for estimating costs?
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