Barkoff Enterprises, which uses the high-low method to analye cost behavior, hasdetermined that machine hours best explain the company's utilities cost. The company'srelevant range of activity varies from a low of 600 machine hours to a high of 1,100machine hours, with the following data being available for the first six months of theyearMachine Hours800720MonthUtilities8,70083608,9509,360JanuaryFebruaryMarchS10AprilMay9209,625950June9,150900The fixed utilities cost per month for Barkoff is:A) $4,400.8) S5,100.O54,760.D) $3,764.E) None of the answers is correct.

A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…

O Rako Enterpi which ues the high-w metho determined that elevant nge of activity varies fro machine hous with the following data being available for the fint six months of the year e hours beet eplain the py's ilities cost The companys low of 600 machine hours to a high of 1.100 Machine Hours s00 720 S10 920 Month Ulities S .700 Jary February March April May June 8360 K950 9360 9,625 950 9150 900 The fixed utilities cost per month for Barkoff is A) 54,400 55,100 OS4.760. D S3,764 None of the answers is correct

O Rako Enterpi which ues the high-w metho determined that elevant nge of activity varies fro machine hous with the following data being available for the fint six months of the year e hours beet eplain the py's ilities cost The companys low of 600 machine hours to a high of 1.100 Machine Hours s00 720 S10 920 Month Ulities S .700 Jary February March April May June 8360 K950 9360 9,625 950 9150 900 The fixed utilities cost per month for Barkoff is A) 54,400 55,100 OS4.760. D S3,764 None of the answers is correct

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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