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Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to...

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Accounting

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 5,950 10,360
May 5,800 10,240
June 8,100 12,325
July 10,200 14,600

Lichtenstein anticipates producing 6,600 units in August, each unit requiring 2.5 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. Using the data calculated above, estimate the utilities cost for August. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount.

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