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Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Month
Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Month April May June July Machine Hours Worked 5,750 5,400 7,700 9,400 Utilities Cost 10,160 10,040 11,925 13,800 Lichtenstein anticipates producing 6,200 units in August, each unit requiring 1.5 hours of machine time. The company uses the high- low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour Fixed cost B. Total variable cost Total fixed cost Total utilities cost for August
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