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1 electrical costs at one of gotch corporati 383791

1. Electrical costs at one of Gotch Corporation’s factories are listed below:

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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

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