The table below provides machine usage and total machine costs for a company for the last 12 months.

Month	Machine Hours	Total Costs
January	524	$419,200
February	743	$594,400
March	967	$773,600
April	321	$256,800
May	948	$758,400
June	403	$322,400
July	369	$295,200
August	821	$656,800
September	794	$635,200
October	1,149	$919,200
November	440	$352,000
December	319	$255,519

Analyze the machine costs using the high-low method.

1. Calculate the variable cost per hour (rounded to nearest dollar).
2. Calculate the total fixed cost (rounded to nearest dollar).
3. Express variable and fixed components using the equation Y=a+bXY=a+bX (use rounded numbers from 1. and 2. above.) (2 marks) Y=Y= ++ XX
4. If a company expects to use the machine for 700 hours next month, what are the expected total costs? Make sure you carry through all digits and round your final response to th