7

The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs.

Month

Total

Maintenance Costs

Total

Machine Hours

January$2,740220February3,490270March4,840420April6,690610May3,940320June7,140620

(a1)

Your answer is correct.

Determine the variable cost component using the high-low method.

Variable cost per machine hour$ ( $11)

Attempts: 1 of 3 used

(a2)

Your answer is incorrect.Try again.

Determine the fixed cost component using the high-low method.

Fixed costs$

I need an explanation for part (B)