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During the first four months of 2022, activities in terms of machine hours in the assembly department of Automatize Sdn Bhd is as follows:

During the first four months of 2022, activities in terms of machine hours in the assembly department of Automatize Sdn Bhd is as follows: Month January February March April Required: (10) (1) (ii) Machine Hours 6,000 7,000 6.700 5,000 Total Cost $60,000 $66,000 $63,000 $54,000 By using the high low method, compute the variable cost per unit and total fixed cost. 4 marks If it is anticipated that 5,500 machine hours of work will be needed in May, calculate the total costs in the month of May. 3 marks If the machine hours increase by 50%, will the variable cost increase by 50%. Give reasons for your answer. 3 marks

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