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QUESTION 6 Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost.

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QUESTION 6 Barkoff Enterprises, 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 1,200 machine hours, with the following data being available for the first six months of the year: Utilities Month January Machine Hours $ 10,60 990 0 10,26 February 910 0 10,85 1,00 March 0 0 1,11 April 11,260 0 May 11,318 1,14 0 June 11,050 1,09 0 The variable utilities cost per machine hour (using high-low method) for Barkoff is: A. $0.22 B. $4.10 C. $4.60 D. $3.60

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