Answer:
1)- Variable utilities cost per machine hour = 1.6 per machine hour
2)- Fixed cost = 1740
3)-Total cost on 1220 Machine hour will be
= 3692
Step-by-step explanation:
1) CALCULATE VARIABLE UTILITIES COST PER MACHINE HOUR :
Variable utilities cost per machine hour = Change in cost/high machine hour-low machine hour
=4076-3388/1460-1030
Variable utilities cost per machine hour = 1.6 per machine hour
2) Fixed cost = Total cost-variable cost
= 3388-(1030*1.6)
Fixed cost = 1740
3) Total cost on 1220 Machine hour will be (1220*1.6+1740) = 3692
23 is a whole number 75 is the numerator and use 100 as the denominator since 75 is in the 100nths place.
