Machine hours and electricity costs for Wells Industries for the year 2011 are as follows:

MonthMachine HoursElectricity Costs

January2,000$ 9,200

February2,32010,500

March1,5206,750

April2,48011,500

May3,04014,125

June2,64011,000

July3,28012,375

August2,80011,375

September1,6007,750

October2,96013,000

November3,76015,500

December3,36013,875

REQUIRED

1. Using the high-low method, develop an estimate of variable electricity costs per machine hour (use 2 decimal places)

2. Using the high-low method, develop an estimate of fixed electricity costs per month. (use 2 decimal places)

3. Using the high-low method, develop a cost function for monthly electricity costs. (sample format: Y=111.11+1.11x)

4. Using the high-low method, estimate electricity costs for a month in which 3,000 machine hours are worked. (use 2 decimal places)

5. Using the least square method, develop an estimate of variable electricity costs per machine hour. (use 5 decimal places)

6. Using the least square method, develop an estimate of fixed electricity costs per month. (use 2 decimal places)