ACC-650 TOPIC 2 ASSIGNMENTQuestion 5

Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year:

Month		Labor Hours		Overhead Costs
January			3,200				$52,680
February			2,500				49,890
March			2,600				50,890
April			3,700				54,530
May			4,000				57,440
June			5,200				61,080
July			7,500				69,390
August			7,200				66,480
September			6,100				61,810
October			4,200				58,380
November			2,800				52,800
December			6,200				62,780
Total			55,200				$698,150

(a)

Identify the high and low points.

		Activity Level		$
High point		enter the activity level for high point		$enter the high point in dollars
Low point		enter the activity level for low point		$enter the low point in dollars

Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g. 5,275.)

Variable cost	=	$enter the variable cost per labor hour in dollars rounded to 2 decimal places	per labor hour
Fixed cost	=	$enter the fixed cost amount in dollars rounded to 0 decimal places

(b)

Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur?

Total cost =

$enter the total cost amount in dollars rounded to 0 decimal places

(c)

If Angie books one more catering job for the month, requiring 350 labor hours, how much additional overhead should she expect to incur?

Additional overhead =

$enter the additional overhead amount in dollars rounded to 0 decimal places