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The Following Data Pertains to Activity and Utility Costs for Two

question 60

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The following data pertains to activity and utility costs for two recent years:  Year 2  Year 1  Activity level in units 10,0006,000 Utilities cost observed $12,000$9,000\begin{array}{lrr} & \text { Year 2 } & \text { Year 1 } \\\text { Activity level in units } & 10,000 & 6,000 \\\text { Utilities cost observed } & \$ 12,000 & \$ 9,000\end{array} Using the high-low method, the cost formula for utilities is:


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