Atlanta, Inc., 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: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The total fixed utilities cost is:  Choose among the numbers below the correct answer P4,760. P4,400. P5,100. P3,764.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Atlanta, Inc., 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: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The total fixed utilities cost is: 


Choose among the numbers below the correct answer

P4,760.
P4,400.
P5,100.
P3,764.

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