1. Electrical costs at one of Gotch Corporation’s factories are listed below:
Machine ‘Hours Electrical Cost
March Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 3,731 $35,243
April Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. 3,728 35,248
May Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦… 3,765 35,479
June Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦… 3,793 35,651
July Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 3,797 35,692
August Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦… 3,701 35,044
September Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. 3,800 35,694
October Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. 3,735 35,276
November Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. 3,740 35,325
Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the
variable and fixed components of this cost, these estimates would be closest to: a. $0.15 per machine-hour; $35,115 per month b. $9.11 per machine-hour; $1,249
per month c. $9.43 per machine-hour; $35,406 per month d. $6.57 per machine-hour; $10,728 per month
