Reynolds Company, which uses the high- low method to analyze cost behavior, has determined that machine hours

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Reynolds 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:

Reynolds Company, which uses the high- low method to analyze

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 Reynolds Company uses 1,220 machine hours in a month, what will its total costsbe?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0133428377

4th edition

Authors: Karen W. Braun, Wendy M. Tietz

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