Could you please answer all the reuired fields correctly. Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevantinformation is as follows.Machine HoursMonthWorkedUtilities CostAprilМay5,6505,2007,5009,00010,0609,94011,72513,400JuneJulyLichtenstein anticipates producing 6,000 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.A. Variable cost per hour$0.91Fixed cost$4,355B. Total variable costTotal fixed costTotal utilities cost for August

Variable costs: Variable costs are those costs which change in proportion to change in the…

Answered: Required: A. Calculate the variable and…

Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 18M

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Question

Could you please answer all the reuired fields correctly.

Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant
information is as follows.
Machine Hours
Month
Worked
Utilities Cost
April
Мay
5,650
5,200
7,500
9,000
10,060
9,940
11,725
13,400
June
July
Lichtenstein anticipates producing 6,000 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.
A. Variable cost per hour
$
0.91
Fixed cost
$
4,355
B. Total variable cost
Total fixed cost
Total utilities cost for August

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