Reference no: EM132509575

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

$75,000; 11,000 direct labor hours for April

$85,000; 12,500 direct labor hours for May

$70,000; 10,000 direct labor hours for June

Question 1: Use the high-low method to compute the total amount of monthly fixed costs for Collins Company.

$10,000
$90,000
$0
$60,000
$15,000
$30,000