A. At the high point of the relevant range, labour hours atBradco Restoration were...

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A. At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.
Using the high-low method determine the slope coefficient perlabour hour at Bradco Restoration?
B. At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.
Using the high-low method determine the fixed costs at BradcoRestoration?
C.At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.
What is the high-low estimate of the labour costs at BradcoRestoration when 8,000 hours are used?

Answer & Explanation Solved by verified expert

4.4 Ratings (906 Votes)

All working forms part of the answer
Working

	Labor hours	Wages
High Level	10,000	$ 22,500.00
Low Level	7,500	$ 17,500.00
Difference	2,500	$ 5,000.00

Requirement ‘a’ = $ 2 per labor hour

Difference in Cost	$ 5,000.00
Difference in wages	2,500
Wages per hour	$ 2.00

Requirement ‘b’ = $ 2,500

Working		High Level	Low Level
A	Total wages	$ 22,500.00	$ 17,500.00
B	Total hours	10000	7500
C	Variable cost per hour	$ 2.00	$ 2.00
D = B x C	Total Variable cost	$ 20,000.00	$ 15,000.00
E = A - D	Total Fixed Cost	$ 2,500.00	$ 2,500.00

Requirement ‘c’

Estimated Labor cost at 8000 labor hours = $ 2500 fixed cost + ($2 x 8000 labor hours)
= 2500 + 16000
= $ 18,500 = Answer

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In: AccountingA. At the high point of the relevant range, labour hours atBradco Restoration were 10,000...A. At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.Using the high-low method determine the slope coefficient perlabour hour at Bradco Restoration?B. At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.Using the high-low method determine the fixed costs at BradcoRestoration?C.At the high point of the relevant range, labour hours atBradco Restoration were 10,000 and wages were $22,500. At the lowpoint of the relevant range, labour hours were 7,500 and wages were$17,500.What is the high-low estimate of the labour costs at BradcoRestoration when 8,000 hours are used?