27) 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 4,500 $9,560
May 4,200 $9,440
June 6,500 $10,725
July 7,000 $11,400
Lichtenstein anticipates producing 5,000 units in August, each
unit requiring 1.5 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....