1)Electrical costs at one of Finfrock Corporation's factories are listed below:

	Machine-Hours	Electrical Cost
March	3,642	$40,537
April	3,616	$40,319
May	3,667	$40,706
June	3,634	$40,462
July	3,665	$40,703
August	3,659	$40,680
September	3,644	$40,547
October	3,612	$40,268
November	3,624	$40,364

Management believes that electrical cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to:(Round your intermediate calculations to 2 decimal places.)

Top of Form

Multiple Choice

• $9.61 per machine-hour; $5,533 per month
• $0.13 per machine-hour; $40,246 per month
• $7.96 per machine-hour; $11,517 per month
• $11.13 per machine-hour; $40,510 per month

2)Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume	6,000	units	8,500	units
Direct materials	$ 341,400		$ 483,650
Direct labor	$ 87,000		$ 123,250
Manufacturing overhead	$ 1,005,400		$ 1,040,150

The best estimate of the total monthly fixed manufacturing cost is:(Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $919,000
• $922,000
• $929,500
• $925,000