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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: MONTHUTILITIESMACHINE HOURSJANUARY$ 9,600800FEBRUARY9,260720MARCH9,850810APRIL10,260920MAY10,732950JUNE10,050900 Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be:
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