What is the variable utilities cost per machine hour


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

what is the variable utilities cost per machine hour ?

 

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Accounting Basics: What is the variable utilities cost per machine hour
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