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 ﬁxed utilities cost per month for Barkoff is:
A)$3,764.
B)$4,400.
C)$4,760.
D)$5,100.
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 ﬁxed utilities cost per month for Barkoff is:
A)$3,764. 
B)$4,400. 
C)$4,760. 
D)$5,100. 
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 ﬁxed utilities cost per month for Barkoff is:
A)$3,764. 
B)$4,400. 
C)$4,760. 
D)$5,100. 
E)None of the answers is correct.

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