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Willis Cosmetics produces a variety of cosmetics and hair care products. One popular...

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Accounting

Willis Cosmetics produces a variety of cosmetics and hair care products. One popular shampoo is produced at the company's Genoa Street Plant (GSP). The financial staff are in the process of revising the estimates for overhead and looking at different approaches. After much discussion, the staff selected direct labor costs as the best cost driver to explain overhead cost.
The staff have collected monthly data on direct labor and overhead costs at GSP for the most recent fiscal year. The data follow:
Month Direct Labor Cost Overhead Costs
1 $ 232,200 $ 122,500
2292,250271,250
3248,500152,500
4215,90097,500
5264,600187,500
6259,750175,000
7243,500137,500
8336,000463,850
9303,600312,500
10220,750105,000
11204,50082,500
12227,250113,750
Required:
Estimate the monthly fixed costs and the unit variable cost percentage of direct labor cost using the high-low estimation method.
Note: Enter negative values with a minus sign.

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