Given the following information:
$$\begin{array} { l c c c }
\text { Month } & \text { HR Dept Costs } & \text { \# New Hires } & \text { \# Terminations } \
\text { January } & \$ 785,000 & 444 & 137 \
\text { February } & \$ 569,000 & 276 & 250 \
\text { March } & \$ 603,000 & 219 & 138 \
\text { April } & \$ 445,000 & 343 & 99 \
\text { May } & \$ 463,000 & 355 & 75 \
\text { June } & \$ 489,000 & 298 & 83 \
\text { July } & \$ 400,000 & 196 & 47 \
\text { August } & \$ 423,000 & 258 & 92 \
\text { September } & \$ 469,000 & 307 & 101 \
\text { October } & \$ 538,000 & 389 & 175 \
\text { November } & \$ 667,000 & 402 & 23 \
\text { December } & \$ 403,000 & 361 & 10
\end{array}$$
a.Calculate an estimate of HR department costs using the high-low method using number of new hires as the variable parameter.
b.Calculate an estimate of HR department costs using the high-low method using number of terminations as the variable parameter.
c.Which parameter do you feel is a better driver of HR cost?

Question

Given the following information:
$$\begin{array} { l c c c } 
\text { Month } & \text { HR Dept Costs } & \text { \# New Hires } & \text { \# Terminations } \
\text { January } & \$ 785,000 & 444 & 137 \
\text { February } & \$ 569,000 & 276 & 250 \
\text { March } & \$ 603,000 & 219 & 138 \
\text { April } & \$ 445,000 & 343 & 99 \
\text { May } & \$ 463,000 & 355 & 75 \
\text { June } & \$ 489,000 & 298 & 83 \
\text { July } & \$ 400,000 & 196 & 47 \
\text { August } & \$ 423,000 & 258 & 92 \
\text { September } & \$ 469,000 & 307 & 101 \
\text { October } & \$ 538,000 & 389 & 175 \
\text { November } & \$ 667,000 & 402 & 23 \
\text { December } & \$ 403,000 & 361 & 10
\end{array}$$   
a.Calculate an estimate of HR department costs using the high-low method using number of new hires as the variable parameter.
b.Calculate an estimate of HR department costs using the high-low method using number of terminations as the variable parameter.
c.Which parameter do you feel is a better driver of HR cost?

Quizplus · Accepted Answer

The Answer of Given the following information:
$$\begin{array} { l c c c } 
\text { Month } & \text { HR Dept Costs } & \text { \# New Hires } & \text { \# Terminations } \
\text { January } & \$ 785,000 & 444 & 137 \
\text { February } & \$ 569,000 & 276 & 250 \
\text { March } & \$ 603,000 & 219 & 138 \
\text { April } & \$ 445,000 & 343 & 99 \
\text { May } & \$ 463,000 & 355 & 75 \
\text { June } & \$ 489,000 & 298 & 83 \
\text { July } & \$ 400,000 & 196 & 47 \
\text { August } & \$ 423,000 & 258 & 92 \
\text { September } & \$ 469,000 & 307 & 101 \
\text { October } & \$ 538,000 & 389 & 175 \
\text { November } & \$ 667,000 & 402 & 23 \
\text { December } & \$ 403,000 & 361 & 10
\end{array}$$   
a.Calculate an estimate of HR department costs using the high-low method using number of new hires as the variable parameter.
b.Calculate an estimate of HR department costs using the high-low method using number of terminations as the variable parameter.
c.Which parameter do you feel is a better driver of HR cost?

Given the Following Information ACalculate an Estimate of HR Department Costs Using the High-Low