Chen Company, which uses the highlow method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:
Click the icon to view the data.
Read the requirements.
Requirement What is the variable utilities cost per machine hour?
Let's begin by determining the formula that is used to calculate the variable cost slope
Variable cost
Data table
tableMonthTotal Cost,Machine HoursJanuary$February$March$April$May$June $
Requirements
Using the highlow method, answer the following questions:
What is the variable utilities cost per machine hour?
What is the fixed cost of utilities each month?
If Chen Company uses machine hours in a month, what will its total costs be
