Lisa Corp. needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows.

Month Machine Hours Worked Utilities Cost

April 4,500 $9,060

May 4,200 9,440

June 6,500 10,725

July 7,000 11,400

Lisa anticipates using 8,000 hours of machine time in August. The company uses the high-low method to analyze costs.

Required:

A. Calculate the variable component of the utilities cost.

B. Calculate the fixed component of the utilities cost

C. Using the data calculated above, estimate the utilities cost for August..