O Rako Enterpi which ues the high-w metho determined that elevant nge of activity varies fro machine hous with the following data being available for the fint six months of the year e hours beet eplain the py's ilities cost The companys low of 600 machine hours to a high of 1.100 Machine Hours s00 720 S10 920 Month Ulities S .700 Jary February March April May June 8360 K950 9360 9,625 950 9150 900 The fixed utilities cost per month for Barkoff is A) 54,400 55,100 OS4.760. D S3,764 None of the answers is correct

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Barkoff Enterprises, which uses the high-low method to analye 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
Machine Hours
800
720
Month
Utilities
8,700
8360
8,950
9,360
January
February
March
S10
April
May
920
9,625
950
June
9,150
900
The fixed utilities cost per month for Barkoff is:
A) $4,400.
8) S5,100.
O54,760.
D) $3,764.
E) None of the answers is correct.
Transcribed Image Text:Barkoff Enterprises, which uses the high-low method to analye 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 Machine Hours 800 720 Month Utilities 8,700 8360 8,950 9,360 January February March S10 April May 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. 8) S5,100. O54,760. D) $3,764. E) None of the answers is correct.
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