Whitehouse Company manufactures major appliances. Because of growing interest in its products, it has just had its most successful year. In preparing the budget for next year, its controller compiled these data:

Using the high-low method, determine
(1) The variable electricity cost per machine hour,
(2) The monthly fixed electricity cost, and
(3) The total variable electricity costs and fixed electricity costs for the six-monthperiod.

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Volume in Machine Hours 6,000 5,000 4,500 4,000 3,500 3,000 26,000 Electricity Cost Month uly August September October November December $ 60,000 53,000 49,500 46,000 42,500 39,000 $290,000 Six month total