Albedo Inc. manufactures high-end replacement telescope lenses for amateur and professional astronomers that are seeking to upgrade the performance of their telescopes. You have just become employed as a staff accountant at Albedo and Jordan Coleman, the controller, has asked you to help with maintenance cost estimation for the lens manufacturing process. You review the manufacturing process and decide that the best cost driver for maintenance costs is machine-hours. These data are from the previous fiscal year for maintenance expense and machine-hours:

 

Month	Maint. Cost	Hours
1	3210	2750
2	4650	3900
3	5175	4050
4	3350	2690	High
5	3100	2500
6	2950	2580
7	2900	2300
8	2900	2500	Low
9	4120	3160
10	4350	3325
11	3500	2780
12	3775	3000

Required
What is the cost equation for maintenance cost using the high-low-method?

Transcribed Image Text:

Albedo Inc. manufactures high-end replacement telescope lenses for amateur and professional astronomers that are seeking to upgrade the perform ance of their telescopes. You have just become employed as a staff accountant at Albedo and Jordan Coleman the controller, has asked you to help with maintenance cost estimation for the lens manufacturing process. You review the m anufacturing process and decide that the best cost driver for maintenance costs is machine-hours. These data are from the previous fiscal year for maintenance expense and machine-hours: