Naoki Corp is preparing a flexible budget and desires to separate its electricity expense which is semi-variable and fluctuates with total machine hours, into its fixed and variable components. Information for the first three months of 2013 is as follows:

Machine hours Electricity Expense

January 5, 000 P37, 800

February 4, 000 P34, 200

March 6, 500 P39, 600

Requirements: Using High-Low method (use 2 decimal places for the variable rate and for total costs)

1.1 Compute the fixed portion of Naoki's electricity expense

1.2 Compute the total manufacturing cost if actual machine hours is 10, 000

2. Compute the variable rate per machine hour (2 decimal places)

3.1 Compute the fixed portion of Naokis electricity expense

3.2 Compute the variable rate per machine hour (2 decimal places)