Julia Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations.

Month Machine Hrs Electrical Cost

Aug 1,000 $1,620

Sept 900 $1,510

Oct 1,500 $1,870

Nov 2,000 $1,950

Dec 1,300 $1,730

Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to:

A.$1,306.50B.$870.00

C.$1,290.00D.$1,150.00

Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

A.$0.40B.$2.50

C.$0.98D.$1.68