Great Bakery Company manufactures ovens. The companys management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past six months were collected.

	Utility	Machine
Month	cost	hours
March	$30,255	2,200
April	$32,750	2,525
May	$34,712	2,710
June	$31,850	2,410
July	$30,720	2,290
August	$29,980	2,150

1. Using the high-low method, calculate the variable rate per machine hour for the utility cost. 4 Marks
2. Using the high-low method, calculate the fixed cost of utilities. 4 Marks
3. Construct a cost formula for total utility cost. 4 Marks
4. Estimate the cost of utilities if 2,425 machine hours are used. 3 Marks