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Jackson Company, which uses the highlow method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's
Jackson Company, which uses the highlow method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: @ (Click the icon to View the data.) Read the @uirements. Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). Variable cost (slope) Data table Requirements Month Total Cost Machine Hours January ...... $ 3,460 1,080 February ..... $ 3,700 1,170 March ....... $ 3,426 1,040 April ........ $ 3,760 1,230 May ......... $ 4,600 1 ,380 June ........ $ 4,086 1,440 Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the xed cost of utilities each month? 3. If Jackson Company uses 1,240 machine hours in a month, what will its total costs be
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