Hannah Company had the following cost data available. The Hannah accountant believes that direct labor hours is the correct cost driver to use to predict and manage these costs.

• $50,000; 15,000 direct labor hours for January
• $40,000; 12,000 direct labor hours for February
• $35,000; 10,000 direct labor hours for March
• $38,000; 11,000 direct labor hours for April

Use the high-low method to compute the total amount of monthly fixed costs for Hannah Company?

Answer rating: 100% (QA)

To use the highlow method we need to identify the highest and lowest activity levels along with thei... View the full answer