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

Instructions

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

(b) Prepare a graph showing the behavior ol maintenance costs, and identify the fixed and variable cost elements. Use 2,000 unit increments and $1,000 cost increments.

Transcribed Image Text:

Total Total Month Maintenance Costs Machine Hours January $2,900 3,000 February 3,000 4,000 March 3,600 6,000 April 4,500 7,900 May 3,200 5,000 June 4.900 8,000