The Following Six Months of Data Were Collected on Electricity

Essay

The following six months of data were collected on electricity cost and the number of machine hours in a factory.
Electricity Machine
Month cost hours
June $25,160 4,500
July 26,170 4,810
August 27,250 5,120
September 26,680 5,010
October 27,950 5,430
November 27,500 5,190
Required:
A. Using the high-low method, calculate the variable rate for the electricity cost.
B. Using the high-low method, calculate the fixed cost of electricity.
C. Estimate the total electricity cost to be incurred in December if 5,300 machine hours are incurred.