Our company's manufacturing overhead (MOH) cost consists of three items: rent, utility, and indirect materials. Rent is a fixed cost. Indirect materials cost is variable (the cost driver is machine hours (MHs)). Utility-is a mixed cost: (i)we pay a fixed monthly fee to our power supplier, and (ii) we make a payment that depends on our usage of utility (the cost driver for the variable component of utility is MHs).

MHs and MOH costs for the last six months of 2018 are below:

MHs Total MOH

July 7,300 $109,900

August 6,200 $101,700

September 10,000 $125,000

October 6,500 $106,400

November 8,500 $128,500

December 5,000 $100,000

Decembers total MOH included $44,500 rent and $50,000 utility.

We estimated January 2019 MHs at 7,100. Using the high-low method, our estimated January utility cost is closest to

$ 58,190

$ 64,790

$ 71,000

$ 56,630

$ 110,500