Q1.Molca Salsa produces burritos. The company controller wants to calculate the fixed and variable costs associated with the burrito costs incurred in the factory. Data for the past four months were collected.

Month	Burrito costs	Machine hours
January	$20,500	820
February	15,850	355
March	25,650	845
April	18,910	730

Using the high-low method calculate the fixed cost of the burrito services.

Group of answer choices

$41,405

$8,750

$9,800

$31,605

Q2. Refer to the figure in question 1. What would Molca Salsa’s estimate of total burrito cost be at a level of 780 machine hours?

Group of answer choices

$24,350

$38,220

$48,020

none of these are correct