COMPUTE USING HIGH LOW METHOD

Haglers has the following machine hours and production costs for the last six month of last year:

Month Machine Hours Production Cost

July 15, 000 P12, 075

August 13, 500 P10, 800

September 11, 500 P9, 580

October 15, 500 P12, 080

November 14, 800 P11, 692

December 12, 100 P9, 922

1. Compute the variable rate per machine hour
2. Compute the fixed amount of the production cost
3. Compute the total production cost using 17, 500 machine hours.