Question: What is the cost driver? liCal Question: (5 Marks) Time left 1:29:3 Lawson Lumber uses the high-low method to estimate electricity cost, which varies in

What is the cost driver?

liCal Question: (5 Marks) Time left 1:29:3 Lawson Lumber uses the high-low method to estimate electricity cost, which varies in relation to machine hours. The following data are taken from last year. January Machine hours Electricity cost 18,900 February $122,850 16,800 March $118,650 13,650 $118, 125 April 10,500 $101,500 May 23, 100 $116,550 June 25,200 $131,775 July 21,000 $126,000 18,900 $119,700 August 28,000 $154,000 September $116,025 11,550 October $119, 175 12,600 November $119, 175 14,700 December Required: a) what is the cost driver? b) Calculate Variable cost per unit (slop). (Show all workings) c) Calculate Fixed cost (Intercept) . (Show all workings) d) What is the cost function? x2 US X2

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