Your hotel served 32,500 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.

Your hotel served 32,500 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.

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 20BEA: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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