Question

The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Month		Total Maintenance Costs			Total Machine Hours
January		$2,661			3,528
February		3,024			4,032
March		3,629			6,048
April		4,536			7,963
May		3,226			5,040
June		4,657			8,064

Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.)

Variable cost per machine hour

$

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Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)

Fixed costs

$

Answer 1