The following data pertains to activity and utility cost for two recent periods: 8,000 7,000 Activity level (kilowatt hours) Utility cost $34,000 $31,500 Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is: OTC = $14,000+ $4.25 per kilowatt hour. OTC = $14,000 + $2.50 per kilowatt hour. O TC = $2,500 + $2.50 per kilowatt hour. O TC = $2,500+ $1.14 per kilowatt hour