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Alomo Gyata Company manufactures major appliance. The company just had its most successful year because of increased interest in its refrigerator line. While preparing the

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Alomo Gyata Company manufactures major appliance. The company just had its most successful year because of increased interest in its refrigerator line. While preparing the budget for next year, Kofi Brokeman, the financial controller came across the following data related to the utility costs: Month Total Power Costs GH Volume in Machine hours January 30,000 3,000 February 26,500 2,500 March 24,750 2,250 April 23,000 2,000 May 21,250 1.750 June 19,500 1,500 Required: a. Using the High-Low method, determine the: 1. variable cost per machine hour and the total variable cost for the six month period. ii. monthly fixed power cost and the total fixed cost for the six month period. b. Express the variable and fixed cost in the form y = a + bx 'c. Using the mixed cost function in (b) above, what would be the cost of 3,600 machine hours on the assumption that fixed cost will not change at this level of activity

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