Required: A. Using the high-low method, compute the variable cost rate for electricity. per machine hour B. Using the high-tow method, compute the total fixed cost for electricity, C. Estimate July's total electricity cost if baristas are expected to work a total of1, 400 hours in July.

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.