Battle

Battle Company, which uses thehigh-low method to analyze costbehavior, has determined that machine hours best predict thecompany's total utilities cost. Thecompany's cost and machine hour usage data for the first six months of the yearfollow:

January ...... $ 3,410 1,060 February ..... $ 3,750 1,120 March ....... $ 3,500 1,000 April ......... $ 3,730 1,200 May ......... $ 4,900 1,330 June ........ $ 4,200 1,400

(1st numbers are total cost, 2nd numbers are machine hours)

using high low method, answer the following

1. what is the variable utilities cost per machine hour?
2. what is the fixed cost of utilities each month?
3. if company uses 1,260 machine hours in a month, what will its total cost be?