Question $2$

The following six months of data were collected on electricity cost and the number of machine hours in a factory.

Electricity Machine

Month cost hours

June $$25,1604,500$

July $26,1704,810$

August $27,2505,120$

September $26,6805,010$

October $27,9505,430$

November $27,5005,190$

Required:

Using the high$-$low method, compute the variable rate for the electricity cost.

Using the high$-$low method, compute the fixed cost of electricity.

Estimate the total electricity cost to be incurred in December if $5,300$ machine hours are incurred.