CO 5) Herbart Company gathered the following information on power costs and factory machine usage for the last 6

months.

Power Cost Factory Machine Hours

January

$24,400 13,900

February

30,300 17,600

March

29,000 16,800

April

22,340 13,200

May

19,900 11,600

June

14,900 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?

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