The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information:Month Machine Hours Total costsJanuary 1,800 $21,500February 2,900 $23,200March 1,000 $19,750April 2,400 $21,000May 3,400 $23,900Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis. What is the total cost equation for Sunny Manufacturing?
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