Electrical costs at one of Kerrian Corporation’s factories a…
Electrical costs at one of Kerrian Corporation’s factories are listed below: Machine-Hours Electrical Cost per month May 3,667 $ 40,706 June 3,634 $ 40,462 July 3,665 $ 40,703 August 3,612 $ 40,268 Management believes that electrical cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. The estimate for the fixed electrical cost is: (Note: Round your intermediate calculations to 2 decimal places)