1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month January February March Utilities S 8,700 8,360 Machine Hours 800 720 8,950 810 April May 9,360 920 950 9,625 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) S4,400. B) $5,100. 9 $4,760. DJ $3,764.
1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month January February March Utilities S 8,700 8,360 Machine Hours 800 720 8,950 810 April May 9,360 920 950 9,625 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) S4,400. B) $5,100. 9 $4,760. DJ $3,764.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has
determined that machine hours best explain the company's utilities cost. The company
relevant range of activity varies from a low of 600 machine hours to a high of 1,100
machine hours, with the following data being available for the first six months of the
year:
Month
January
February
March
Utilities
$ 8,700
8,360
8,950
9,360
9,625
Machine Hours
800
720
S10
April
May
920
950
June
9,150
900
The fixed utilities cost per month for Barkoff is:
A) $4,400.
B) $5,100.
9 $4,760.
D) $3,764.
E) None of the answers is correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37acdbc4-147b-4bbc-b12c-4077453cb685%2F49f6163a-7586-4853-a481-63d738b66853%2Fmf9wcm8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has
determined that machine hours best explain the company's utilities cost. The company
relevant range of activity varies from a low of 600 machine hours to a high of 1,100
machine hours, with the following data being available for the first six months of the
year:
Month
January
February
March
Utilities
$ 8,700
8,360
8,950
9,360
9,625
Machine Hours
800
720
S10
April
May
920
950
June
9,150
900
The fixed utilities cost per month for Barkoff is:
A) $4,400.
B) $5,100.
9 $4,760.
D) $3,764.
E) None of the answers is correct.
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