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1.) What is the variable utilities cost per machine hour?

2.) What is the fixed utilities cost per month?

3.) Using the high-low method, the utilities cost associated with 1,090 machine hours would be:

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 January February March April May June $9,800 9,460 10,050 10,460 10,702 10,250 Machine Hours 910 830 920 1,030 1,060 1,010