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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 $10,000 930

February 9,660 850

March 10,250 940

April 10,660 1,050

May 10,856 1,080

June 10,450 1,030

The fixed utilities cost per month is:

$5,240.

$4,604.

an amount other than those listed above.

$5,600.

$5,940.

Using the high-low method, the utilities cost associated with 1,110 machine hours would be:

$11,012.

an amount other than those listed above.

$10,882.

$10,922.

$10,732.

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