Question: 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

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 $ 9,400800
February 9,060720
March 9,650810
April 10,060920
May 10,486950
June 9,850900
Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be:

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