Posted: May 11th, 2021

Atlanta, inc., which uses the high-low method to analyze cost

Atlanta, 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:

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Month                        Utilities                          Machine Hours

January                     $8,700                                    800

February                     8,360                                     720

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March                          8,950                                     810

April                             9,360                                     920

May                              9,625                                    950

June                             9,150                                    900

 

 

 

A. The variable utilities cost per machine hour is? 

 

B. The fixed utilities cost per month is?

 

C. Using the high-low method, the utilities cost associated with 980 machine hours would be?

 

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