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. A. $28,720 B. $23,500 C. $18,200 D. $24,250

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. A. $28,720 B. $23,500 C. $18,200 D. $24,250

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Question

100%

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.
A. $28,720
B. $23,500
C. $18,200
D. $24,250

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