The Controller at Speedy Delivery Wants to Break-Out the Cost

question 50

Essay

The controller at Speedy Delivery wants to break-out the cost of deliveries into fixed and variable components so that they will be better able to predict costs for next year.Below are the delivery cost incurred each month and the number of deliveries.
Required: Using the high-low method:
1.)Calculate the fixed cost of overhead.
2.)Calculate the variable rate per labor hour.
3.)Construct the cost formula for total overhead cost.
4.)The company is estimating that in January the number of deliveries will be 125.How much should they estimate to have in total delivery costs for January?

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Definitions:

Blood Ph

The measure of the acidity or alkalinity of the blood, with a normal range being slightly alkaline at about 7.35 to 7.45 on the pH scale.

Carbon Dioxide

A gas without color or smell, generated through the combustion of carbon-based substances and the respiratory process, which naturally occurs in the atmosphere and is taken in by plants during the process of photosynthesis.

Thyroid Cartilage

The largest cartilage in the larynx, often more prominent in males and commonly known as the Adam's apple, offering protection and supporting vocal function.

Glottis

The part of the larynx consisting of the vocal cords and the slit-like opening between them, playing a key role in producing sounds.