Question 3 The controller of Sheridan Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. January February March April 470 May June July August September October November December Total Total Electricity Costs Machine Hours $2,370 210 2,920 390 3,580 4,530 3,210 4,980 4,150 3,850 5,160 665 4,240 3,240 7,770 (a) Determine the fixed- and variable-cost components using the high-low method. Fixed-costs Variable-costs (b) What electricity cost does the cost equation estimate for a level of activity of 470 machine hours? Electricity costs By what amount does this differ from March's observed cost for 470 machine hours? Amount differ What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs By what amount does this differ from June's observed cost for 790 machine hours? Amount differ Click if you would like to Show Work for this question: Open Show Work