Utility Costs at One of Hambley Corporation's Factories Are Listed

question 40

Essay

Utility costs at one of Hambley Corporation's factories are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
Required:
Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method.Show your work!

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Definitions:

Supply

The sum of a certain item or service that consumers can obtain.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, resulting in no surplus or shortage.

Supply Increases

A condition in which the quantity of goods and services offered by businesses rises, often leading to lower prices if demand remains constant.