Jackson Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the companys total utilities cost. The companys cost and machine hour usage data for the first six months of the year follow.

Month Total Cost Machine Hours

January ............................ $3,200 1,000

February .......................... $3,700 1,150

March ............................... $3,500 1,075

April ................................. $3,780 1,200

May ................................. $4,000 1,350

June ............................... $4,300 1,400

Requirements: SHOW ALL WORK

Using the high-low method, answer the following questions:

What is the variable utilities cost per machine hour?

What is the fixed cost of utilities each month?

If Jackson Company uses 1,280 machine hours in a month, what will its total costs be?