Meyer Company, which uses the high- low method to analyze cost behavior, has determined that machine hours best predict the company€™s total utilities cost. The company€™s cost and machine hour usage data for the first six months of the year follow:

Requirements
Using the high- low method, answer the following questions:
1. What is the variable utilities cost per machine hour?
2. What is the fixed cost of utilities each month?
3. If Meyer Company uses 1,280 machine hours in a month, what will its total costsbe?

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Month January February. March.. April May.. June.. Total Cost $3,450 $3,720 $3,467 $3,730 $4,900 $4,232 Machine Hours 1,020 1,110 1,010 1,270 1,320 1,460