As Paul prepares the budget for his company's sprinkler installation service, he uses DL hours as the allocation base for both variable-MOH and fixed-MOH, since the work is labor-intensive. For a standard-sized residence, the work could be done in 2 hours. If the employees really push it, he believes they could get it done in 1.3 hours. Assume standard DL is $27 per hour, while variableMOH and fixed-MOH costs are estimated to be $4 per hour and $9 per hour, respectively. How much total cost would be saved by his optimistic estimate versus a more practical estimate?

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To calculate the total cost saved by the optimistic estimate versus the more practical estimate we n... View the full answer