Question
6. Fern Company gathered the following information on power costs and factory machine usage for the last five months: Month Power Cost Factory Machine Hours
6. Fern Company gathered the following information on power costs and factory machine usage for the last five months: Month Power Cost Factory Machine Hours January $48,000 19,000 February 41,000 15,500 March 47,000 18,500 April 44,000 17,000 May 40,000 15,000 Instructions Use the high-low method of analyzing costs to answer the following questions. A. How much is the estimated variable portion of power costs per factory machine hour? B. How much is the estimated fixed power cost each month? C. If it is estimated that 18,000 factory machine hours will be run in June, what is the expected total power costs for June?
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