Daisy Wong is the accountant for the Heavy Manufacturing Co
Daisy Wong is the accountant for the Heavy Manufacturing Company…. Daisy Wong is the accountant for the Heavy Manufacturing Company. She has been asked by one of Heavy Manufacturing’s senior managers to provide an estimate of the firm’s utilities costs using the high-low method. Daisy has identified machine hours as the most suitable cost driver. The following costs were incurred during the previous 12 months:MonthMachine hoursUtilities costJanuary52 500$35 100February31 50033 150March33 00033 000April36 00033 675May45 00034 350June48 00035 025July60 00042 000August45 00034 200September45 00034 500October42 00034 050November61 50036 150December58 50037 425Required:Use the high-low method to estimate the company’s utilities cost behaviour and express it in equation form.Predict the utilities cost for a month in which 39 000 machine hours are used.Accounting Business Managerial Accounting AFE 7114FE
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