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Rado Manufacturing gathered the following information on factory machine usage and power costs for the first six months in the year 2022. Month January
Rado Manufacturing gathered the following information on factory machine usage and power costs for the first six months in the year 2022. Month January February March April May June Factory machine hours 10,800 8,200 5,400 6,500 4,600 7,100 Power costs RM26,600 22,100 15,500 17,000 14,200 19,800 Required Using the high-low method of analysing costs, answer the following questions and show computations to support your answers. (a) What is the estimated variable portion of power costs per factory machine hour? (5 marks) (b) What is the estimated fixed power cost each month? I (7 marks) (c) If it is estimated that 9,000 factory machine hours will be run in July 2022, what is the expected total power cost for July? (4 marks)
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