owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of

$2,600

occurred in

August

when the machines worked

1,400

machine hours. The lowest utility bill of

$2,300

occurred in

December

when the machines worked

900

machine hours. Read the requirements

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Question content area bottom

Part 1

Requirement 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost.

First, calculate the variable cost per machine hour. Select the formula labels, then enter the amounts and compute the variable cost per machine hour. (Use the high-low method. Round your answer to the nearest cent.)

Total variable cost

Total fixed cost

=

Variable cost per machine hour

Part 2

=

Part 3

Calculate the total fixed cost. Select the formula labels, then enter the amounts and compute the total fixed cost. (Use the highest point.)

-

=

Total fixed cost

Part 4

-

=

Part 5

Requirement 2. Show the equation for determining the total utility cost for the machine shop.

(

) +

=

Total utility cost

Part 6

Requirement 3. If

Matt

anticipates using

1,000

machine hours in

January,

predict the shop's total utility bill using the equation from Requirement 2.Select the items needed and compute the shop's total utility bill predicted for

January.

(

) +

=