a, b, c, or d

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's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Month January February March April May June Utilities $10,400 10,060 10,650 11,060 11,164 10,850 Machine Hours 970 890 980 1,090 1,120 1,070 The fixed utilities cost per month for Keen is: a. $5,152. b. $5,788. c. $6,148. d. $6,488