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 $ 9,900 800 February 9,560 720 March 10,150 810 April 10,560 920 May 10,779 950 June 10,350 900 Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be: