The Longreach Toy Factory has determined machine hours to be the cost driver of the company's electricity costs. During the first six months of the year, the company incurred the following electricity costs:

Month Machine Hours Electricity Cost

Jan 780 $8,200

Feb 720 $8,360

Mar 800 $8,950

Apr 900 $9,360

May 950 $9,625

Jun 920 $9,150

Using the high-low method, determine the cost formula that expresses the cost behaviour of the company's Electricity Costs.

A.

Y= $4,760 + $5.50X

B.

Y= $3,735 + $6.20X

C.

Y= $1,664 + $8.38X

D.

Y= $4,400 + $5.50X