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Question - Kleaners Kingdom is trying to ascertain the cost of cleaning 18300 square meters for the next project. Management is using past information and high-low method to assist with the calculation. The variables relate to the overhead expenses of past contracts at two activity levels are as follows:
Square meters cleaned
Overheads
13,500
$84,865
15,950
$97,850
Required - What is the estimate of the overheads if 18,300 square meters are to be cleaned?
a. $112,267
b. $96,990
c. $115,039
d. $110,305
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