The controller of Furgee 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 |
|
$2,790 |
|
300 |
| February |
|
3,290 |
|
450 |
| March |
|
3,890 |
|
600 |
| April |
|
4,790 |
|
590 |
| May |
|
3,490 |
|
500 |
| June |
|
5,360 |
|
700 |
Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.)
| Variable cost per machine hour |
|
$
|
Determine the fixed components using the high-low method.
| Total fixed costs |
|
$
|