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The following data is available regarding costs and units:
Observation Machine-hours Total Operating Costs
January 4,000 $45,900
February 5,000 52,500
March 3,400 44,025
April 4,400 48,000
May 4,500 49,200
Required:
a.Use the high-low method to determine variable cost per unit and the fixed costs.
b.If June's estimated machine-hours total 4,200, what are the total estimated costs of the Machining Department? What are the costs per hour?
Variable Cost Per Unit ___________________________________
Fixed Costs ____________________________________
Costs @ 4,200 units ____________________________________
Cost Per Hour @ 4,200 ____________________________________
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