High-Low Method Information about Indiana Industrial's utility cost for the last six months of the current year follows. The high-low method will be used to develop a cost formula to predict next year's utility charges, and the number of machine hours has been found to be an appropriate cost driver. Data for the first half of the year are not being considered because the utility company imposed a significant rate change as of July 1. Month Machine Hours Utility Cost July 40,500 $15,600 August 40,800 14,640 September 39,780 13,248 October 38,400 14,352 November 37,500 13,800 December 37,200 14,064 a. What is the cost formula for utility expense? Total cost $0 + $ 0 MH b. What is the budgeted utility cost for September of the following year if 37,500 machine hours are projected? Budgeted utility cost $ 0