Herbart Company gathered the following information on power costs and factory machine usage for the last 6

months.

Power Cost

January $24,400

February 30,300

March 29,000

April 22,340

May 19,900

June 14, 900

Factory Machine Hours 

January 13,900

February 17,600

March 16,800

April 13,200

May 11,600

June 6,600

Using the high low method of analyzing costs, answer the following questions and show computations to support your answers

Part a: What is the estimated variable portion of power costs per factory machine hour?

Part b: What is the estimated fixed power cost each month?

Part c: If it is estimated that 10,000 factory machine hours will be run in July, what is the expected total power cost for July? (Points 30) ATTACHMENT PREVIEW Download attachment(TCO 9) Herbart Company gathered the following information on power costs and factorymachine usage for the last 6 months.Power CostFactory MachineHoursJanuary$24,40013,900February30,30017,600March29,00016,800April22,34013,200May19,90011,600June14,9006,600Using the high-low method of analyzing costs, answer the following questions and showcomputations to support your answers.Part (a): What is the estimated variable portion of power costs per factory machine hour?Part (b): What is the estimated ±xed power cost each month?Part (c): If it is estimated that 10,000 factory machine hours will be run in July, what is theexpected total power cost for July?(Points : 30)

Step

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