Strawser Company is developing a cost function for its maintenance costs using the high-low method. The following data have been collected for the past year:
Direct Labour Maintenance
Quarter Hours Costs Incurred
1 5,000 $ 745
2 6,500 820
3 7,000 850
4 8,000 1,000
Calculate the following amounts:
a)The variable cost per direct labour hour
b)The fixed cost
c)The estimated total cost for 9,000 direct labour hours
d)The estimated total cost for 6,000 direct labour hours

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The Answer of Strawser Company is developing a cost function for its maintenance costs using the high-low method. The following data have been collected for the past year:
Direct Labour Maintenance
Quarter Hours Costs Incurred
1 5,000 $ 745
2 6,500 820
3 7,000 850
4 8,000 1,000
Calculate the following amounts:
a)The variable cost per direct labour hour
b)The fixed cost
c)The estimated total cost for 9,000 direct labour hours
d)The estimated total cost for 6,000 direct labour hours

Strawser Company Is Developing a Cost Function for Its Maintenance