Buckeye Company has provided the following data for maintenance cost: Prior YearCurrent Year
Machine Hours12,50015,000
Maintenance Cost$27,000$31,000

Using the high-low method, what is the cost formula for maintenance cost?

A) $7,000 per year plus $0.625 per machine hour.
B) $21,625 per year plus $0.625 per machine hour.
C) $7,000 per year plus $1.60 per machine hour.
D) $27,000 per year plus $1.60 per machine hour.