(High-low method) Information about Brightman Corporation’s utility cost for the first 6 months of 1998 follows. The company’s cost accountant wants to use the high-low method to develop a cost formula to predict future charges and believes that the number of machine hours is an appropriate cost driver.

a. What is the cost formula for utility expense?

b. What would be the budgeted utility cost for September 1998 if 64,750 ma¬ chine hours are projected?LO1

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MACHINE UTILITY MACHINE UTILITY MONTH HOURS EXPENSE MONTH HOURS EXPENSE January 68,000 $1,220 April 64,000 $1,195 February 62,000 1,172 May 67,500 1,300 March 66,300 1,014 June 62,500 1,150