Galliano Company has accumulated the following information pertaining to maintenance costs for the last eight months.
Direct
Maintenance
Month
Labor Hours
of
January
2:800
15,000
February
1,000
7,000
March
2,500
13,000
April
4,000
22,000
May
3,000
18,000
June
3,500
19,000
July
1,500
8,000
August
2,000
10,000
Instructions
Using the high-low method, compute (1) variable cost per direct labor hour and (2) the fixed cost per month.