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Barkoff Enterprises, which uses the high-low method to analyze cost behavior, ha...
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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 1,100 machine hours, with the following data being available for the first six months of the year:
Month
|
Utilities
|
Machine Hours
|
January
|
$ 9,600
|
800
|
February
|
9,260
|
720
|
March
|
9,850
|
810
|
April
|
10,260
|
920
|
May
|
10,732
|
950
|
June
|
10,050
|
900
|
Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be:
0%
0%
100%
0%