JK have been assigned to work on an analysis between fixed and variable costs in his...

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JK have been assigned to work on an analysis between fixed and variable costs in his department. The power cost does not seem to fit into either category easily. The following details are as follows: WEEK 1 2 3 4 01 5 6 7 POWER COST 3,600 3,950 3,050 3,380 3,870 4,020 2,095 # MACHINEHOURS 8,000 9,000 6,500 7,400 8,600 8,900 3,700 REQUIRED: 1. Separate the cost (Fixed and Variable), finding the closest estimate of the elements using the high and low point method. 2. Estimate the total cost likely in week eight (8) if the expected level of machine hour is 18,000. JK have been assigned to work on an analysis between fixed and variable costs in his department. The power cost does not seem to fit into either category easily. The following details are as follows: WEEK 1 2 3 4 01 5 6 7 POWER COST 3,600 3,950 3,050 3,380 3,870 4,020 2,095 # MACHINEHOURS 8,000 9,000 6,500 7,400 8,600 8,900 3,700 REQUIRED: 1. Separate the cost (Fixed and Variable), finding the closest estimate of the elements using the high and low point method. 2. Estimate the total cost likely in week eight (8) if the expected level of machine hour is 18,000.

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To separate the cost into fixed and variable components using the high and low point method we need ... View the full answer