11) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has detemined that machine hours best explain the company's utilities cost. The companys 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 800 8,700 8,360 8,950 February 720 March 810 April May 9,360 9,625 920 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. B) $5,100. O$4,760. D) $3,764. E) None of the answers is correct.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...
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11) 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 companys
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
February
March
April
May
S 8,700
8,360
8,950
9,360
800
720
810
920
9,625
950
June
9,150
900
The fixed utilities cost per month for Barkoff is:
A) $4,400.
B) $5,100.
9 4,760.
D) $3,764.
E) None of the answers is correct.
Transcribed Image Text:11) 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 companys 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 February March April May S 8,700 8,360 8,950 9,360 800 720 810 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. B) $5,100. 9 4,760. D) $3,764. E) None of the answers is correct.
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