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The high-low method to analyze cost behavior

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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: variable utilities cost per machine, fixed utilities cost per month, using high low method utilities cost associated with 1060 machine hours


Month Utilities Machine Hours
January $9,500 880
February 9,160 800
March 9,750 890
April 10,160 1,000
May 10,609 1,030
June 9,950 980

Reference no: EM13687282

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