George Henry Corporation Has a Machining Capacity of 300,000 Hours

George Henry Corporation has a machining capacity of 300,000 hours per year. Utilization of capacity is normally 60%; it has been as low as 25% and as high as 75%. An analysis of the accounting records revealed the following selected costs: $\begin{array}{l}\begin{array}{lll}\\\\\text { Cost A:}\\\text { Total}\\\text { Per hour}\\\text { Cost B:}\\\text { Total}\\\text { Per hour}\\\text { Cost C:}\\\text { Total}\\\text { Per hour}\\\end{array}\begin{array}{c}\text { At a } 25 \% \\\underline {\text { Utilization Rate }}\\\\\$ 500,000 \\\$ 6.67 \\\\? \\\$ 11.80 \\\\\$ 780,000 \\\$ 10.40\end{array}\begin{array}{lll}\text { At a } 75 \% \\\underline {\text { Utilization Rate }}\\\\\$ 500,000 \\?\\\\\$ 2,655,000 \\\$ 11.80 \\\\\$ 2,330,000 \\\$ 10.36\end{array}\end{array}$
George Henry uses the high-low method to analyze cost behaviour.
Required:
A. Classify each of the costs as being either variable, fixed, or semi-variable.
B. Calculate amounts for the two unknowns in the preceding table.
C. Calculate the total amount that George Henry would expect at a 60% utilization rate for Cost A, Cost B, and Cost C.
D. Develop an equation that George Henry can use to predict total cost for any level of hours within its range of operation.