The management accountant of Fed & Co. is developing cost formulas for major overhead activities. The following information has been obtained regarding the behavior of the factory power costs over a number of months:

Month	Machine Hours	Power Cost ($)
July August September October November December	2,500 2,800 2,200 3,000 1,500 2,000	10,125 10,840 9,800 11,000 8,750 9,300

Required:

(a) Using the high-low method, calculate: (i) The variable cost per machine hour . (ii) Total fixed cost per month .

(b) What would be the expected total cost for a month when machines are operating for 2,700 hours?