Hot'lanta, Inc The Variable Utilities Cost Per Machine Hour Is:
A) $0

question 18

Multiple Choice

Hot'lanta, 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: $\begin{array}{lrr}\text { Month }&\text { Utilities }&\text { Machine Hours }\\\text { January } & \$ 8,700 & 800 \\\text { February } & 8,360 & 720 \\\text { March } & 8,950 & 810 \\\text { April } & 9,360 & 920 \\\text { May } & 9,625 & 950 \\\text { June } & 9,150 & 900\end{array}$ The variable utilities cost per machine hour is:

• A) $0.18.
• B) $4.50.
• C) $5.00.
• D) $5.50.
• E) None of the other answers is correct.

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Definitions:

Smoking

The practice of inhaling smoke from the burning of tobacco or other substances, which is known to have harmful health effects.

Physical Activity Program

A structured schedule of physical exercises designed to improve health and physical fitness.

Muscular Strength

Refers to the maximum amount of force a muscle or group of muscles can exert in a single effort.

Muscular Endurance

The ability of a muscle, or group of muscles, to perform repetitive contractions over a period of time without becoming fatigued.