Homework: HW #4 - Chapter 6 Save HW Score: 84.64 % , 8.46 of 10 pts Score: 1.14 of 2 pts 8 of 9 (9 complete) E6-30A (similar to) Question Help The manager of the main laboratory facility at CapitalFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests perfomed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,100 lab tests are performed next month Let's begin by determining the formula that is used to calculate the variable cost (slope). Data Table Change in cost Change in volume =Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Total Laboratory Number of Lab Tests Total operating cost Total variable cost =Fixed cost Month Performed Overhead Costs Use the high-low method to determine CapitalFit's operating cost equation. (Round the variable cost to the nearest cent.) January . 3,000 $21,900 x +S y $ February. 2,850 $20,600 March. 3,400 $28,900 3,700 April $31,000 $28,000 May 3,900 $20,200 June 1,900 July 2,050 $14,000 Print Done Enter any number in the edit fields and then click Check Answer (