The controller of Daritan Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. (Rp are in thousands.)

Instructions

a. Determine the fixed- and variable-cost components using the high-low method.

b. Prepare a graph showing the behavior of maintenance costs, and identify the fixed- and variable-cost elements. Use 100-hour increments and Rp1,000 cost increments.

Transcribed Image Text:

Total Total Month Maintenance Costs Machine Hours January 300 350 Rp2,700 3,000 February March April May 3,600 500 4,500 690 3,200 5,500 400 June 700