Manama 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	Elect. Cost
July	3,500	$13,400
August	3,200	13,500
September	4,100	16,000
October	5,100	18,300
November	5,300	18,200
December	4,800	17,500

Required:

1- Using the high-low method, determine the variable electricity cost per machine hour and the monthly fixed electricity cost. Estimate the total variable electricity costs and fixed electricity costs if 4600 machine hours are projected to be used next month.

2- Which Cost estimation method is more accurate; the high low method or the scatter diagram method? Explain your answer.