T.O.T.E.S. Case Study Version LAB 4 Worksheet 4-1 Calculate fixed and variable costs for Factory Utilities using the High-Low method. EXHIBIT 4-B: Utility Expenses for Prior Year Step 1: Identify months with the High and Lovw Utility Expenses for Prior Year Activity Levels, e.g. machine-hours. Use the data from Exhibit 4-B. Cost of Utilities 400 $ 3,315 415 3,480 450 $ 3,505 365 $ 2,972 283|$ 2,653 260 $ 2,490 284 2,895 291 S 2,945 310 S 2,70s 250 $ 2,617 2,848 342 $ 2,575 Month Machine Hours High Month:Tar Low Month:n January Februany Step 2: Caleulate yariable ost per machinc hour (round to the penny) using the high-low method. March June September October November December 350 Step 3: Calculate fixed cost per month (Round to nearest dollar) using the cost formula and monthly data. Write the cost formula FIRST Step 4: Calculate fixed cost per vear (round to nearest dollar). Enter on Exhibit 4-C on the appropriate line. Step S: Calculate the annual total variable cost using the cost formula (Round to nearest dollar), Enter on Exhibit 4-C on the appropriate line. 28