Explain the company utilities cost

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Reference no: EM13762538

Atlanta, 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 $8,700 800

February 8,360 720

March 8,950 810

April 9,360 920

May 9,625 950

June 9,150 900

A. The variable utilities cost per machine hour is?

B. The fixed utilities cost per month is?

C. Using the high-low method, the utilities cost associated with 980 machine hours would be?

Reference no: EM13762538

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