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 UtilitiesMachine Hours

January $8,900820

February8,560740

March9,150830

April9,560940

May9,871970

June9,350920

Using the high-low method, the utilities cost for Barkoff associated with 1,000 machine hours would be:

Multiple Choice

• $9,952.
• $9,912.
• Incorrect
• $9,762.
• $10,042.
• None of the answers is correct.