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

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The table below provides machine usage and total machine costs for a company for the last 12 months. January February March April May June July August Month September October November December Machine Hours 370 + Number 546 813 1,125 424 1,002 429 710 X 492 Analyze the machine costs using the high-low method. 1. Calculate the variable cost per hour (rounded to nearest dollar). (3 marks) Number 376 1,070 231 2. Calculate the total fixed cost (rounded to nearest dollar). (2 marks) Number Total Costs $296,000 $436,800 $650,400 $900,000 $339,200 $801,600 $343,200 $568,000 3. Express variable and fixed components using the equation Y = a +bX (use rounded numbers from 1. and 2. above.) (2 marks) Y = Number $393,600 $300,800 $856,000 $185,031 4. If a company expects to use the machine for 550 hours next month, what are the expected total costs? Make sure you carry through all digits and round your final response to the nearest dollar. (1 mark) Number The table below provides machine usage and total machine costs for a company for the last 12 months. January February March April May June July August Month September October November December Machine Hours 370 + Number 546 813 1,125 424 1,002 429 710 X 492 Analyze the machine costs using the high-low method. 1. Calculate the variable cost per hour (rounded to nearest dollar). (3 marks) Number 376 1,070 231 2. Calculate the total fixed cost (rounded to nearest dollar). (2 marks) Number Total Costs $296,000 $436,800 $650,400 $900,000 $339,200 $801,600 $343,200 $568,000 3. Express variable and fixed components using the equation Y = a +bX (use rounded numbers from 1. and 2. above.) (2 marks) Y = Number $393,600 $300,800 $856,000 $185,031 4. If a company expects to use the machine for 550 hours next month, what are the expected total costs? Make sure you carry through all digits and round your final response to the nearest dollar. (1 mark) Number

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Using the highlow method lets analyze the machine costs 1 Calculate the variable cost per hour Highe... View the full answer