Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.

 

Machine Hours	Electrical Cost
August	1,000	$1,620
September	900	$1,510
October	1,500	$1,870
November	2,000	$1,950
December	1,300	$1,730

 

Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to which of the following?

A. $0.40

B. $1.68

C. $2.50

D. $0.98