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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 $8,900 820
February 8,560 740
March 9,150 830
April 9,560 940
May 9,871 970
June 9,350 920

The fixed utilities cost per month is:

$3,706.

$4,342.

an amount other than those listed above.

$5,042.

$4,702.

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