Andover Company makes weather balloons. The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred by the factory. Data for the past six months were collected.

Maintenance

Machine

Month

cost

hours

January

$$10,120$

$526$

February

$9,560$

$389$

March

$9,712$

$412$

April

$10,460$

$569$

May

$10,226$

$541$

June

$9,686$

$399$

Required:

A$.$ Using the high$-$low method, calculate the fixed cost of maintenance and the variable rate per machine hour.

B$.$ Using the high$-$low method, construct the cost formula for the total maintenance cost.

C$.$ Calculate the budgeted cost for maintenance assuming that $485$ hours are worked next month.