The controller of Wildhorse Production has collected the following monthly cost data for analyzing the behavior of electricity costs. January February March April May June July August September October November December Total Total Electricity Costs Machine Hours $2,220 3,080 3,530 4,760 3,220 4,920 4,100 3,830 5,000 4,310 3,300 7,530 220 330 460 690 440 790 650 590 B 660 635 330 810

The controller of Wildhorse Production has collected the following monthly cost data for analyzing the behavior of electricity costs. Determine the fixed costs and unit variable costs using the high-low method. Total fixed costs $ Variable cost per machine hour What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity cost By what amount does this differ from June's observed cost for 790 machine hours? Amount differ