Madison Company manufactures major appliances. Because of growing interest in its products, it has just had its most successful year. In preparing the budget for next year, its controller compiled the following information:

Month		Volume in Machine Hours		Electricity Cost
July		6,000		$ 60,000
August		5,000		53,000
September		4,500		49,500
October		4,000		46,000
November		3,500		42,500
December		3,000		36,000
Six-month total		26,000		$287,000

Using the high-low method, determine the variable electricity cost per machine hour. $ per machine hour

Determine the monthly fixed electricity cost.

	Fixed Electricity Cost
Highest month	$
Lowest month	$

Estimate the total variable electricity costs and fixed electricity costs if 4,800 machine hours are projected to be used next month.

Total variable costs	$
Total fixed costs	$
Estimated total electricity costs for next month	$