Lewisa Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows.

Lewisa Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Machine Hours Utilities Month Worked Cost April 4,500 $ 9,560 May 4,200 9,440 June 6,500 10,725 July 7,000 1 1,400 Lewisa anticipates producing 5,000 units in August. The company uses the high-low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost (b 8; a). B. Using the data calculated above, estimate the utilities cost for August. |