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

 

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Battle 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: (Click the icon to view the data.) 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 Battle Company uses 1,290 machine hours in a month, what will its total costs be? Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). = Variable cost (slope) Data Table Month Total Cost Machine Hours January... $ 3,410 1,070 February.... $ 3,760 1,150 March... $ 3,388 1,030 April. $ 3,710 1,240 May.... $ 4,200 1,320 June. $ 4,076 1,460 Print Done Battle 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: (Click the icon to view the data.) 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 Battle Company uses 1,290 machine hours in a month, what will its total costs be? Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). = Variable cost (slope) Data Table Month Total Cost Machine Hours January... $ 3,410 1,070 February.... $ 3,760 1,150 March... $ 3,388 1,030 April. $ 3,710 1,240 May.... $ 4,200 1,320 June. $ 4,076 1,460 Print Done

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1 Variable Utilities Cost per Machine Hour Highest machine hours 1430 hours in June with a total cos... View the full answer