Wabash company specializes in refurbishing exterior painted surfaces that have been hard hit by humidity and insect debris. It uses a special technique, called pressure cleaning, before priming and painting the surface. The refurbishing process involves the following steps:

1. Unskilled laborers trim all trees and bushes within two feet of the structure. 2. Skilled laborers clean the building with a high pressure cleaning machine, using about 6 gallons of chlorine per job.

3. Unskilled laborers apply a coat of primer.

4. Skilled laborers apply oil-based exterior paint to the exterior surface.

On average, the skilled laborers work 12 hours per job, and unskilled laborers work 8 hours. The refurbishing process generated the following operating results during the year on 500 jobs.

Skilled labor......................... $20 per hour

Unskilled labor...................$8 per hour

Gallons of chlorine used...3,000 gallons at $5.50 per gallon

Paint primer............7,536 gallons at $15.50 per gallon

Paint............ 6,280 gallons at $16.00 per gallon

Depreciation of paint-spraying equipment.........$600 per month depreciation

Lease of two vans.......$800 per month total

Rent on storage building........ $421 per month

Data on utilities for the year follows:

Month. Number of jobs. Cost. Hours worked

January..............42............. $ 3,950. 840

February......... 37. 3,550. 740

March. 44. 4,090. 880

April. 49. 4,410. 980

May. 54. 4,720. 1,080

June...................62. 5,240. 1,240

July. 71. 5,820. 1,420

August. 73. 5,890. 1,460

September. 63. 5,370. 1,260

October. 48. 4,340...........960

November.......45..........................................4,210............900

December.......40.........................................3,830...........800

Totals.............. 628.....................................55,420.........12,560

1. Classify the cost as variable, fixed, or mixed

2. Using the high-low method, separate mixed costs into their variable and fixed components. Use total hours worked as the basis

3. Compute the average cost per job for the year. ( Hint: divide the total of all costs for the year by the number of jobs completed) use estimated hours to determine utilities cost. ( Round to two decimal places)