Red Deer Company Manufactures Motorcycles Required:
A

Red Deer Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past six months were collected. $\begin{array}{lrr}\text { Month } & \text { Utility } & \text { Machine } \\& \text { cost } & \underline{\text { hours }}\\\text { March } & \$ 30,255 & 2,200 \\\text { April } & 32,750 & 2,525 \\\text { May } & 34,712 & 2,710 \\\text { June } & 31,850 & 2,410 \\\text { July } & 30,720 & 2,290 \\\text { August } & 29,980 & 2,150\end{array}$
Required:
A. Using the high-low method, calculate the variable rate per machine hour for the utility cost.
B. Using the high-low method, calculate the fixed cost of utilities.
C. Construct a cost formula for total utility cost.
D. Estimate the cost of utilities if 2,425 machine hours are used.