#7

PROBLEM 7 (13 pts.) Rhue, Inc. manufactures plastic bins. In preparing next year's budget, the company controller used the the following data. Operating Utility Month Hours Costs January 400 $4,200 February 405 $4,140 March 550 $5,400 April 420 $4,400 May 430 $4,850 June 425 $4,700 Using the high-low method determine: (a) the variable utility cost per operating hour (b) the monthly fixed utility cost in total