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: The variable utilities cost per machine hour for Barkoff is:
A)$0.18.
B)$4.50.
C)$5.00.
D)$5.50.
E)None of the answers is correct.

Question

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:  The variable utilities cost per machine hour for Barkoff is:
A)$0.18. 
B)$4.50. 
C)$5.00. 
D)$5.50. 
E)None of the answers is correct.

Quizplus · Accepted Answer

The Answer of 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:  The variable utilities cost per machine hour for Barkoff is:
A)$0.18. 
B)$4.50. 
C)$5.00. 
D)$5.50. 
E)None of the answers is correct.

Barkoff Enterprises, Which Uses the High-Low Method to Analyze Cost