Hot'lanta, 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: Utilities Machine Hours Month January s8700 800 February 8360 720 March 8950 810 April 9360 920 May 9625 950 June 9150 900 1The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. ) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. ) S3,764. d) $5,100. e) $4,400.

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Hot'lanta, 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:
Month
Utilities Machine
Hours
January s8700
800
February 8360
720
March
8950
810
April
9360
920
May
9625
950
June
9150
900
1.The variable utilities cost per machine hour is:
a) $0.18.
b) an amount other than those listed above.
C) $4.50.
d) $5.00.
e) $5.50.
2. The fixed utilities cost per month is:
a) an amount other than those listed above.
b) $4,760.
c) $3,764.
d) $5,100.
e) $4,400.
Transcribed Image Text:Hot'lanta, 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: Month Utilities Machine Hours January s8700 800 February 8360 720 March 8950 810 April 9360 920 May 9625 950 June 9150 900 1.The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. C) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. c) $3,764. d) $5,100. e) $4,400.
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