Question

Crane, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $240 February 540 $280 March 370 $190 April 470 $210 May 670 $260 June 710 $330 July 300 $170 August 520 $280 September 260 $140 October 740 $340 November 860 $350 December 600 $320 (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Using the high-low method, compute the variable cost of electricity per machine hour. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost $enter the variable cost per machine hour in dollars per machine hour eTextbook and Media Assistance Used Save for Later Attempts: 2 of 3 used Submit Answer

Answer 1

1. Variable cost= $0.35 per MH;

2. Fixed cost= $49.00;

3. Total cost= $0.35 * MH + $49.00.

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