Jackson Company, which uses the high-low method to analyze cost behaviour, 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.
Using the high-low method, answer the following questions:

Requirements
1. What is the variable utilities cost per machine hour?
2. What is the fixed cost of utilities each month?
3. If Jackson Company uses 1,280 machine hours in a month, what will its total costs be?

Month January February March Total Cost $3,400 $3,700 $3,500 $3,780 $4,000 Machine Hours 1,050 1,150 1,000 1,200 1,350 1,400 pri May une . $4,200