Mc qu. 107 the following information is the following information is available for a company's utility cost for operating its machines over the last four months. month machine hours utility cost january 900 $ 5,450 february 1,800 $ 6,900 march 2,400 $ 8,100 april 600 $ 3,600 using the high-low method, the estimated variable cost per unit for utilities is: multiple choice $6.17. $2.50. $4.22. $6.00. $3.38.

Variable cost Per Unit $2.50

Explanation:

Total cost at high activity = $8100

Total Cost at Low activity = $3600

Total Units at high activity = 2400

Total Units at low Activity = 600

Variable Cost Per Unit =  (High activity total Cost - Low activity total cost ) / (High Activity unit - low activity units)

Variable cost per unit = ($8100 - $3600) / (2400 - 600) = $4500 / 1800 = $2.50

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