Smith Company, which uses the high-low method to analyze cost behavior, 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: E: (Click the icon to view the data.) Data Table Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? What is the fixed cost of utilities each month? If Smith Company uses 1,260 machine hours in a month, what will its total costs be? no Month Total Cost Machine Hours Requirement 1. What is the variable utilities cost per machine hour? January ...... $ 3,410 1,080 Let's begin by determining the formula that is used to calculate the variable cost (slope). February . . . . . $ 3,720 1,100 Change in cost Change in volume = Variable cost (slope) March ....... $ 3,426 1,040 April ....... 3,770 (Round the variable cost to the nearest cent.) 1,270 A May . . . . . . . . $ 4,800 1,320 Using the high-low method, the variable utilities cost per machine hour is $ June . . . . . . . . $ 4,086 1,440 Print Done