Problem 3-23 Machine hours and electricity costs for Wells Industries for last year were as follows: Month Machine Hours Electricity Costs January 2,000 $9,200 February 2,320 10,500 March 1,520 6,750 April 2,480 11,500 May 3,040 14,125 June 2,640 11,000 July 3,280 12,375 August 2,800 11,375 September 1,600 7,750 October 2,960 13,000 November 3,760 15,500 December 3,360 13,875 Required: A. Using the high-low method, develop an estimate of variable electricity costs per machine hour. Do not round your calculation. $ B. Using the high-low costs determined in A., develop an estimate of fixed electricity costs per month. Round your answer to two decimal places. $ C. Using the high-low method, develop a cost function for monthly electricity costs. In your computations, do not round your calculations. Electricity costs = Fixed electricity + Variable electricity = $ + ($ per hour X Machine hours) D. Estimate electricity costs for a month in which 3,000 machine hours are worked. Round your answer to two decimal places. $ PreviousNext