Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 4

Wallace Heating is attempting to estimate the production cost for heating ducts for the coming year using the high-low method. The cost driver is number of labor hours. Wallace determines that the high and low costs are $25,830 and $18,414, respectively, and the values for the cost driver are 3,495 and 1,958 hours, respectively. What is the variable cost per hour