Question - Chamberlain Music Studios seeks your help in analyzing the cost behavior pattern of its utility costs. At an activity level of 7,000 direct labor hours, total utility costs were $16,800; at 5,000 hours, total utility costs were only $14,300. Using the high-low method, the estimated total utility costs at an activity level of 6,500 direct labor hours would be
a. $15,600.
b. $16,175.
c. $16,300.
d. $18,590.
e. none of the above.