Moresan Co. gathered the following information on power costs and factory machine usage for the last...

Moresan Co. gathered the following information on power costs and factory machine usage for the last six months:

Month	Power Cost	Factory Machine Hours
January	$24,400	13,900
February	30,400	17,600
March	29,000	16,800
April	22,340	13,200
May	19,900	11,600
June	16,900	8,600

Using the high-low method of analyzing costs, answer the following questions.

What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.)

Variable power costs

$

per factory machine hour

What is the estimated fixed power cost each month?

		High		Low
Fixed power costs		$		$

If it is estimated that 10,000 factory machine hours will be run in July, what is the expected total power cost for July?

Total power cost

$

Expert Solution

ekkarill92 answered 2 years ago

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