ReynoldsReynolds

Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:

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Requirements

Using the high-low method, answer the following questions:
1.	What is the variable utilities cost per machine hour?
2.	What is the fixed cost of utilities each month?
3.	If Reynolds Reynolds Company uses 1,230 machine hours in a month, what will its total costs be?

Requirement 1. What is the variable utilities cost per machine hour?

Let's begin by determining the formula that is used to calculate the variable cost (slope).

/

=

Variable cost (slope)

(Round the variable cost to the nearest cent.)

Using the high-low method, the variable utilities cost per machine hour is $

.

Requirement 2. What is the fixed cost of utilities each month?

Let's begin by determining the formula that is used to calculate the fixed cost component.

-

=

Fixed cost

Using the high-low method, the fixed cost of utilities each month is $

.

Requirement 3. If Reynolds Reynolds Company uses 1,230

machine hours in a month, what will its total costs be? (Round the variable cost per unit to two decimal places and round your total costs calculation to the nearest whole dollar.)

The total costs when 1,230 machine hours are used is $

.

The data.) , answer the following questions: litif Data Table of us che Month Total Cost Machine Hours gth $ 3,440 $ 3,780 1,050 1,120 1,020 to the $ January February March April May June 3,464 $ mod, 3,720 4,900 4,144 1,220 1,310 $ is the $ 1,420 ning the Print Done method, the fixed cost of utilities each month is $ eynolds Company uses 1,230 machine hours in a month, what will its total costs be? (F to two decimal places and round your total costs calculation to the nearest whole dolla st or enter any number in the input fields and then continue to the next