What would be the expected total cost for a month

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Question - The management accountant of Ted & Co. is developing cost formulas for major overhead activities. The following information has been obtained regarding the behavior of the factory power costs over a number of months:

Month

Machine Hours

Power Cost ($)

January

February

March

April

May

June

3,000

2,200

2,000

1,600

2,500

2,800

13,570

12,250

11,265

10,905

12,655

13,530

Required - (a) Using the high-low method, calculate:

(i) The variable cost per machine hour.

(ii) Total fixed cost per month.

(b) What would be the expected total cost for a month when machines are operating for 2,900 hours?

Reference no: EM133151606

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