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Meyer Company, which uses the high-low method to analyze cost behavior, has determined that machine-hours best predict the company's total utilities cost. The company's cost

Meyer Company, which uses the high-low method to analyze cost behavior, 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:

Month Total Cost Machine Hours
January $3,420 1,010
February $3,720 1,110
March $3,500 1,000
April $3,730 1,210
May $4,100 1,340
June $4,200 1,400

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 1,280 machine-hours in a month, what will its total costs be ?

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