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Tran 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
Tran 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: E: (Click the icon to view the data.) Read the requirements . Data table 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). Change in cost Change in volume = Variable cost (slope) Machine Hours (Round the variable cost to the nearest cent.) 1,060 Using the high-low method, the variable utilities cost per machine hour is Month Total Cost January ......$ 3,400 February .....$ 3,710 March $ 3,464 April ........ $ 3,780 1,160 1,020 1,270
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