The Following Data Pertains to Activity and Utility Costs for Two

question 84

Multiple Choice

The following data pertains to activity and utility costs for two recent years: $$\begin{array} { | l | l | l | } \hline & \text { Year 2 } & \text { Year I } \\\hline \text { Activity level in units } & 10,000 & 6,000 \\\hline \text { Utilities cost observed } & \$ 12,000 & \$ 9,000 \\\hline\end{array}$$ Using the high-low method, the cost formula for utilities is?

• A)$4,500 plus $0.75 per unit.
• B)$3,000 plus $3.00 per unit.
• C)$1.20 per unit.
• D)$1.50 per unit.

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