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(Solved): Collins Company had the following cost data available. The Collins accountant believes that direct l ...




Collins Company had the following cost data available. The Collins accountant believes that direct labor hours is the correct cost driver to use to predict and manage these costs.

  • $100,000; 15,000 direct labor hours for January
  • $80,000; 12,000 direct labor hours for February
  • $90,000; 14,000 direct labor hours for March
  • $70,000; 10,000 direct labor hours for April

Use the high-low method to compute the total amount of monthly fixed costs for Collins Company.

  • $10,000
  • $90,000
  • $30,000
  • $15,000


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