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The management of Fagundes 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!
TIMEVALUE Function
A function in spreadsheet software that converts a time in the form of text to a serial number representing the time in the software's date-time code.
TODAY() Function
A programming and spreadsheet function that returns the current date, widely used in data analysis, time-sensitive calculations, and reporting.
MROUND
A function in Excel that rounds a number to the nearest multiple of a specified value.
Nearest
The closest in distance, time, or relationship among options or elements being considered.
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