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 Machine Hours WorkedUtilities Cost

April 5,850 10,260

May 5,600 10,140

June 7,900 12,125

July 9,800 14,200

Lichtenstein anticipates producing 6,400 units in August, each unit requiring 3.0 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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