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Hot'lanta, 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

Hot'lanta, 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 $9,000 830
February 8,660 750
March 9,250 840
April 9,660 950
May 9,994 980
June 9,450 930

1. The variable utilities cost per machine hour is:

$0.17.

$5.30.

$5.80.

an amount other than those listed above.

$4.80.

2. The fixed utilities cost per month is:

$3,674.

an amount other than those listed above.

$4,310.

$4,670.

$5,010.

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