Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to...
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Accounting
Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows.
Month
Machine Hours Worked
Utilities Cost
April
5,950
10,360
May
5,800
10,240
June
8,100
12,325
July
10,200
14,600
Lichtenstein anticipates producing 6,600 units in August, each unit requiring 2.5 hours of machine time. The company uses the high-low method to analyze costs. Required:A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount.
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