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:
Month Utilities Machine Hours
January $8,700 800
February 8,360 720
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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