12 months S21-3 Using the high-low method Mark owns a machine shop. In reviewing the shop's utility bills for the past he found that the highest bill of $2,600 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 600 machine hours. Requirements 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. 2. Show the equation for determining the total utility cost for the machine shop. 3. If Mark anticipates using 800 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2. S21-3 Requirements 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost 2. Show the equation for determining the total utility cost for the machine shop 3. I Mark anticipates using 800 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2 Solution: Requirement1 Variable cost per unit Total fixed cost Requirement 2 Total utility cost Requirements Total utility cost