Your hotel served 28,000 guests with a $31,000 labor cost (the highest) in June and 20,000 guests with a $24,000 cost (the lowest) in December. Using the High-Low method, calculate the total variable cost in June. a. $24,500 b. $28,720 c. $23,500 d. $24,250 e. $23,250

Your hotel served 28,000 guests with a $31,000 labor cost (the highest) in June and 20,000 guests with a $24,000 cost (the lowest) in December. Using the High-Low method, calculate the total variable cost in June. a. $24,500 b. $28,720 c. $23,500 d. $24,250 e. $23,250

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Question

please provide answer with correct option and calculation

Your hotel served 28,000 guests with a $31,000
labor cost (the highest) in June and 20,000 guests
with a $24,000 cost (the lowest) in December. Using
the High-Low method, calculate the total variable
cost in June.
a. $24,500
b. $28,720
c. $23,500
d. $24,250
e. $23,250

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