Given the Following Costs and Activity Observations for Pike Company's

question 7

Multiple Choice

Given the following costs and activity observations for Pike Company's utilities, use the high-low method to calculate Pike's variable utilities costs per machine hour. $\begin{array}{lll}\text { Machine Hours}&\text { Cost }\\15,000 & \$ 8,300 & \text { May } \\20,000 & 10,400 & \text { June } \\12,000 & 7,200 & \text { July } \\18,000 & 9,500 & \text { August }\end{array}$

• A) $0.55
• B) $0.60
• C) $0.52
• D) $0.40

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