mixed costs: high low method

Chapter 5: Cost-Volume-Profit Analysis LO 2 Mixed Costs: High-Low Method E3A. Madison 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 its controller compiled the following information: year, Month July August September October November December Six-month total Volume in Machine Hours 6,000 5,000 4,500 4,000 3,500 3,000 Electricity Cost $ 60,000 53,000 49,500 46,000 42,500 36,000 $287,000 26,000 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 4,800 machine hours are projected to be used next month