Question: I need help with question 1 part 2 and question 2 please. Question 1 part a (variable cost per hour =15) is correct Mendota Foods


Mendota Foods sells a variety of food products around the world. The company engages directly with individuais with an interest in cooking by offering ideas and recipes in various staff blogs and podcasts. The management team at Mendota belleves this drives brand loyalty and allows Mendota to charge a premium for its products. One initiative that Mendota has been running for the last three years is a call center with staff who can provide heip and answer questions about cooking in general and Mendota products in particular. The chlef financial officer is interested in learning more about the costs of this initiative and how they vary with the demands placed on the center. To help answer the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12 months. During a discussion of those results, one of the cost analysts suggests that length of the calls (total hours) is probably a better driver of call center costs. The managers asked the analyst to collect the information and report on how it should be used. The combined data follow: Required: a. Use the high-low method to estimate the fixed and variable portions of call center costs based on call center time (hours) Note: Negative amounts should be indicated by a minus sign. b. Use the results of your high-low analysis to estimate the call center cost for a month with 16,100 hours of call center time Call center costs
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