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: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The variable utilities cost per machine hour is: Choose among the number below the correct answer: P5.00. P0.18. P4.50. P5.50
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: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The variable utilities cost per machine hour is:
Choose among the number below the correct answer:
P5.00.
P0.18.
P4.50.
P5.50
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