You have collected the following information about activity and costs -

Month Activity - Machine Hours Cost - Utilities

March 2,400 $18,500

April 2,600 $19,750

May 2,900 $23,740

June 3,100 $25,500

July 2,100 $18,350

August 1,900 $17,290

September 1,950 $17,150

October 3,150 $25,200

November 3,000 $24,100

Using the High-Low method, calculate the variable cost per machine hour to thenearest penny.

Using the High-Low method, calculate the estimated fixed cost permonth to the nearest dollar.

Using the High-Low method and your answers from the two previous questions, what is the estimated cost for December if the machines run for 2,550 hours ?