A Company would like to estimate the
variable and fixed components of its
electrical costs and has compiled the
following data for the last five months of
operations:
Machine Hours Electrical Cost
August
1,000
$1,500
September
1,150
1.545
October
900
1,470
November
800
1,440
December
1,100
1,530
Using the high-low method, the estimated
variable cost per machine hour for
electricity is closest to which of the
following? *
$0.4 per hour
$0.5 per hour
$0.2 per hour
$0.3 per hour
Using the high-low method, the estimated
fixed cost per month for electricity is
closest to which of the following? *