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The management of Harrigill Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following data: Management believes that inspection cost is a mixed cost that depends on direct labor-hours.
Required:
Estimate the variable cost per direct labor-hour and the fixed cost per month using the high-low method. Show your work! Round off all calculations to the nearest whole cent.
Industry
A group of companies or organizations that produce and provide similar products or services, often categorized within a sector of the economy.
Competitive Advantage
A unique attribute or set of attributes that enables a company to outperform its competitors.
Barriers To Entry
Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.
Financial Resources
Monetary assets or capital available to an individual, organization, or country for spending, investing, or saving.
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