The Following Six Months of Data Were Collected on Electricity

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

Correct Answer:

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