The following data relate to the overhead expenditure of contract cleaners at two activity levels:Square metres cleaned 12,750 15,100Overheads $73,950 $83,585Using the high-low method, what is the estimate of the overhead cost if 16,200 square metres are to be cleaned?
A、$88,095
B、$89,674
C、$93,960
D、$98,095
A、$88,095
B、$89,674
C、$93,960
D、$98,095
【参考答案及解析】
$ Total cost of 15,100 square metres 83,585 Total cost of 12,750 square metres 73,950 Variable cost of 2,350 square metres 9,635 Variable cost is $9,635/2,350 square metres = $4.10 per square metre. Fixed costs can be found by substitution: $ Total cost of 12,750 square metres 73,950 Variable cost of 12,750 square metres (x $4.10) 52,275 Fixed costs 21,675 So for 16,200 square metres: Overheads = $21,675 + (16,200 x $4.10)=$88,095
$ Total cost of 15,100 square metres 83,585 Total cost of 12,750 square metres 73,950 Variable cost of 2,350 square metres 9,635 Variable cost is $9,635/2,350 square metres = $4.10 per square metre. Fixed costs can be found by substitution: $ Total cost of 12,750 square metres 73,950 Variable cost of 12,750 square metres (x $4.10) 52,275 Fixed costs 21,675 So for 16,200 square metres: Overheads = $21,675 + (16,200 x $4.10)=$88,095