Mel owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,400 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 900 machine hours. Read the requirements = Requirement 1. Use the high-low 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 high-low method. Round your answer to the nearest cent.) Change in total costs Change in volume of activity Variable cost per machine hour $ 300 500 0.60 Requirements Calculate the total fixed cost. Select the formula labels, then enter the amounts and compute the total fixed cost. (Use the highest point.) Total mixed cost Total variable cost Total fixed cost 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. 2. Show the equation for determining the total utility cost for the machine shop 3. If Mel anticipates using 1,000 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2. Print Done Calculator Ask my instructor Clear all Check