Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Matt owns a machine shop. In reviewing the shop's utility bills for the past 1 2 months, he found that the highest bill of $
Matt owns a machine shop. In reviewing the shop's utility bills for the past months, he found that the highest bill of $ occurred in August when the machines worked machine hours. The lowest utility bill of $ occurred in December when the machines worked machine hours.
Read the requirements.
Requirement Use the highlow method to calculate the variable cost per machine hour and the total fixed utility cost.
First, calculate the variable cost per machine hour. Select the formula labels, then enter the amounts and compute the variable cost per machine hour. Use the highlow method. Round your answer to the nearest cent.
Variable cost per machine hour
Requirements
Use the highlow method to calculate the variable cost per machine hour and the total fixed utility cost.
Show the equation for determining the total utility cost for the machine shop.
If Matt anticipates using machine hours in January, predict the shop's total utility bill using the equation from Requirement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started