Electrical costs

Electrical costs at one of reifel cooperation's factories are listed below: Machine-Hours Electrical Cost March............. 413 $7, 371 April................ 506 $7, 740 May................ 435 $7, 447 June............... 486 $7, 660 July................. 499 $7, 704 August............ 461 $7, 563 September...... 467 $7, 571 October...........458 $7, 522 November.......425 $7, 403 Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method, the estimate of the fixed component of electrical cost per month is closest to: $5, 731 $5, 840 $7371 $5, 875