The Management of Harrigill Corporation Would Like to Have a Better

question 42

Essay

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.

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Definitions:

Down Payment

An upfront payment made when purchasing an expensive item or property on credit, representing a percentage of the total purchase price.

Housing Prices

The monetary values assigned to homes and apartments in the real estate market, influenced by factors such as location, demand, and economic conditions.

Low-interest Rate Policy

A monetary policy approach where central banks set lower interest rates to stimulate economic growth by encouraging borrowing and investment.

Fixed-rate

Refers to an interest rate that remains constant over the duration of the loan, bond, mortgage, or other financial instrument.