Question
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 | $9,900 | 920 |
February | 9,560 | 840 |
March | 10,150 | 930 |
April | 10,560 | 1,040 |
May | 10,779 | 1,070 |
June | 10,350 | 1,020 |
Using the high-low method, the utilities cost associated with 1,100 machine hours would be:
Group of answer choices
an amount other than those listed above.
$10,658.
$10,938.
$10,808.
$10,848.
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