Question: Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Month
Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Month April Machine Hours Worked 4,650 4,500 6,800 7,600 May Utilities Cost 9,710 9,590 11,025 12,000 June July Lichtenstein anticipates producing 5,300 units in August, each unit requiring 1.5 hours of machine time. The company uses the high-low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour Fixed cost B. Total variable cost Total fixed cost Total utilities cost for August
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