Reference no: EM13144810
Utilities are typically a ‘mixed cost,' containing both a fixed and variable element. Given the following history of electric bills and machine hours, use the "High/Low Method" to determine the variable cost component per machine hour:
Machine
Cost Hours
July $4,200 21,900
August $4,000 20,300
September $4,100 21,100
October $3,700 18,200
November $3,900 18,500
December $4,500 23,400
A. Approx. $12.50 per machine hour
B. Approx. $.15 per machine hour
C. Approx. $4.86 per machine hour
D. Approx. $.08 per machine hour
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