Question

Company has presented the following information for the past eight months operations Machine-Hours Maintenance Cost March...

Company has presented the following information for the past eight months operations

Machine-Hours Maintenance Cost
March 4,440 $50,950
April 4,431 $50,877
May 4,412 $50,696
June 4,460 $51,113
July 4,414 $50,711
August 4,433 $50,900
September 4,443 $50,976
October 4,415 $50,730
November 4,391

$50,530

Management believes that maintenance cost is a mixed cost that depends on machine-hours.

Using the high-low method, calculate

a. Variable cost per machine-hour

b.  Fixed cost per month

c. What would total costs be for a month with 4,000 machine-hours?
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