arkoff 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's 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 Utilities     Machine Hours January $8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The variable utilities cost per machine hour for Barkoff is:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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's 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

Utilities

    Machine Hours

January

$8,700

800

February

8,360

720

March

8,950

810

April

9,360

920

May

9,625

950

June

9,150

900

The variable utilities cost per machine hour for Barkoff is: 

 

Select one:
a. $5.00.
b. $4.50.
c. $0.18
d. $5.50.
e. None of the answers is correct.
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