Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Jackson Company uses machine hours in a month, what will its total costs be?

E6-36A (similar to) Jackson 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.) Read the requirements Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). Data Table Requirements Variable cost (slope) Month Total Cost Machine Hours 3,470 1,090 Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Jackson Company uses 1,240 machine hours in a month, what will its total costs be? 3.710 1,170 3.711 1.060 January ......S February .....$ March $ April $ May $ June $ 3,700 1.220 Print Done Done 4,900 4,414 1,360 1,440 Print Done