ACC242 Spring 2021-Geiger SLN 18643 Jahan Hameed : | 02/14/21 8:29 PM Homework: HW #4 - Chapter 6 Save Score: 0.86 of 1 pt 5 of 9 (8 complete) HW Score: 76.15%, 7.62 of 10 pts (x) E6-34A (similar to) Question Help Tran Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in cost Change in volume = Variable cost (slope) (Round the variable cost to the nearest cent.) Using the high-low method, the variable utilities cost per machine hour is $ 1.70 Requirement 2. What is the fixed cost of utilities each month? Let's begin by determining the formula that is used to calculate the fixed cost component. Total utilities cost Total variable cost Fixed cost Using the high-low method, the fixed cost of utilities each month is $ 1,730 Requirement 3. If Tran Company uses 1,240 machine hours in a month, what will its total costs be? (Round the variable cost per unit to two decimal places and round your total costs calculation to the nearest whole dollar.) The total costs when 1,240 machine hours are used is Data Table Month Total Cost Machine Hours 1,030 3,470 3,720 1,110 1,020 January ...... $ $ February ..... $ March ... $ April $ May .... $ June ... $ $ 3,464 3,730 4,800 1,280 1,350 $ 4,144 1,420 Print Done