Identify months with the High and Low Activity Levels, e.g. machine-hours. Use the data from Exhibit 4-B. High Month: _____ Low Month: _____ Calculate variable cost per machine hour (round to the penny) using the high-low method. Calculate fixed cost per month (Round to nearest dollar) using the cost formula and monthly data. Write the cost formula FIRST. Calculate fixed cost per year (round to nearest dollar). Enter on Exhibit 4-C on the appropriate line. Calculate the annual total variable cost using the cost formula (Round to nearest dollar). Enter on Exhibit 4-C on the appropriate line