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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

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

a. What is the variable utilities cost per machine hour for Barkoff? b. What is the fixed utilities cost per month for Barkoff?

c. Using the high-low method, what would be the utilities cost for Barkoff associated with 980 machine hours?

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