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 1,100 machine hours, with the following data being available for the first six months of the year:

   Month	Utilities Cost	Machine Hours
   January	$8,700	800
   February	8,360	720
   March	8,300	710
   April	9,360	920
   May	9,625	950
   June	9,800	960

   Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be:

   1. 9,700

   2. 9,510

   3. None of the answers is correct.

   4. 9,790

   5. 9,920

   6. $9,660.