Atlanta, Inc., 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		$8,700		800
February		8,360		720
March		8,950		810
April		9,360		920
May		9,625		950
June		9,150		900

45. The variable utilities cost per machine hour is:

A. $0.18.

B. $4.50.

C. $5.00.

D. $5.50.

E. an amount other than those listed above.

Answer: D

46. The fixed utilities cost per month is:

A. $3,764.

B. $4,400.

C. $4,760.

D. $5,100.

E. an amount other than those listed above.

Answer: B

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

A. $9,510.

B. $9,660.

C. $9,700.

D. $9,790.

E. an amount other than those listed above.

Answer: D

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