The following information was available about receiving costs for the first 8 months of the year:
| Month |
Receiving orders |
Receiving costs |
| January |
1,100 |
$21,000 |
| February |
1,600 |
32,000 |
| March |
1,700 |
30,000 |
| April |
1,300 |
23,000 |
| May |
900 |
18,000 |
| June |
1,200 |
20,000 |
| July |
1,600 |
26,500 |
| August |
1,050 |
20,700 |
1. Determine the variable cost per receiving order using the High-Low method.
2. Determine the fixed cost using the High-Low method.
3. Give the cost equation using the High-Low method.
4. Determine the receiving costs using the High-Low method if the company expects 1,370 receiving orders.