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 company's relevant

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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!