Question - The controller of Norton 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
|
$2,600
|
310
|
|
February
|
2,900
|
360
|
|
March
|
3,500
|
510
|
|
April
|
4,400
|
680
|
|
May
|
3,100
|
510
|
|
June
|
5,590
|
710
|
(a) Determine the variable cost components using the high-low method.