Meyer Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow. (Click the icon to view the data.) Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Meyer Company uses 1,210 machine hours in a month, what will its total costs be? Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). Variable cost (slope) Using the high-low method, the variable utilities cost per machine hour is $ |(Round the variable cost to the nearest cent.) Requirement 2. What is the fixed cost of utilities each month? Let's begin by determining the formula that is used to calculate the fixed cost component. Fixed cost Using the high-low method, the fixed cost of utilities each month is $ (Round the total variable costs to the nearest whole dollar.) Requirement 3. If Meyer Company uses 1,210 machine hours in a month, what will its total costs be? The total costs when 1,210 machine hours are incurred is $. (Round your interim and final calculations to the nearest whole dollar.) ansv I, what will its total costs be? Change in cost ities Change in volume futilit Highest cost 5 1,21 Highest volume - the Lowest cost Lowest volume e fixe Total operating cost the fo Total variable cost ] chine nour is $ D. (Round the va 1? ite the fixed cost component. Fixed cost Month Total Cost Machine Hours 3,264 960 3,730 1,140 January ...... $ February ..... $ March $ April ... May.. $ 3,460 1,080 $ 3,760 1,240 4,400 1,310 June $ 5,294 1,660