at ABC Ltd machine hours is the most suitable cost driver for the utility cost. The senior manager of ABC Ltd would like yo provide an estimate of the firm's ultilities cost using the high-low method. The following costs were incurred during the previous 8 months.

Month:

+ October

Machine hours: 48 120

utilities cost: 33.250

+ November

machine hours: 62.500

utilities cost: 37 150

+ December

machine hours: 48 320

utilities cost: 35 025

+ January

machine hours: 55 300

utilities cost: 38 250

+ February:

machine hours: 45 800

Utilities cost: 34 675

+ March:

machine hours: 32 500

utilities: 34 150

+ April:

machine hours: 58 500

utilities: 37 425

+ May:

machine hours: 60 300

utilities: 43 250

use the high-low method to estimate the following costs of The Abc Ltd;

1) Variable cost per unit of machine hour

2) Total fixed costs

3) Explain three approaches used for cost estimation.