Chen 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.

View the data.

Requirements

Using the high$-$low method, answer the following questions:

What is the variable utilities cost per machine hour?

What is the fixed cost of utilities each month?

If Chen Company uses $1,210$ machine hours in a month, what will its total costs be$?$

Requirement $1.$ What is the variable utilities cost per machine hour?

Determine the formula that is used to calculate the variable cost $($slope$).$ Choose the correct answer below.

A$.$ Change in cost $$ Change in volume $=$ Variable cost $($slope$)$

B$.$ Total operating cost $-$ Total variable cost $=$ Variable cost $($slope$)$

C$.$ Lowest cost $$ Lowest volume $=$ Variable cost $($slope$)$

D$.$ Highest cost $$ Highest volume $=$ Variable cost $($slope$)$

E$.$ Change in volume $$ Change in cost $=$ Variable cost $($slope$)$

Using the high$-$low method, determine the variable utilities cost per machine hour. $($Round the variable co

What is the variable utilities cost per machine hour?

Data

Please look at the requiremenrs