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.
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.
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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