complete the assigned problems in Microsoft Excel

Problem 6-38 High-Low Method: Fitness Nation's Capital Fitness, Inc.. operates a chain of fitness centers in the Washington, D.C. The Centers firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. (10 6-1, 6-2, 6-5) The cost behavior pattern of the firm's equipment maintenance costs must be determined. The account- 3. Cost prediction at 590 ing staff has suggested the use of an equation, in the form of Y = a + bX, for maintenance costs, Data regarding the maintenance hours and costs for last year are as follows: hours of activity, mainte nance cost $4,995 Hours of Maintenance Month Maintenance Service Costs January $20 $ 4 470 February 490 4 260 March 300 2 820 April 500 4. 350 May 310 2 960 June 480 4 200 July 320 3.000 August 400 September 470 4 050 October 350 3. 300 November 13 160 December 320 3.030 343 200 Average 40 Chapter 6 Activity Analysis, Cost Behavior. and Cost Estimation 273 Required: 1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nation's Capital Fitness, Inc. Express the cost behavior pattern in equation form. 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? 3. Compute the predicted maintenance cost at 590 hours of activity. 4. Compute the variable cost per hour and the fixed cost per hour at 600 hours of activity. Explain why the fixed cost per hour could be misleading. (CMA adapted)The behavior of the annual maintenance and repair cost in the Bus Transportation Department of the Exercise 6-23 Summerset Public School District is shown by the solid line in the following graph. The dashed line Approximationg a Curvilinear depicts a semivariable-cost approximation of the department's repair and maintenance cost. Cost; Public School District (LO 6-1, 6-2, 6-3) Monthly repair and maintenance cost Actual cost (curvilinear) $4,000 Approximation $3,000 (semivariable) $2,000 $ 1,000 Thousands of 10 20 30 40 50 60 70 80 90 100 miles driven 266 Chapter 6 Activity Analysis, Cost Behavior, and Cost Estimation Required: 1. What is the actual (curvilinear) and estimated (semivariable) cost shown by the graph for each of the following activity levels? Actual Estimated a. 20,000 miles b. 40,000 miles C. 60,000 miles d. 90,000 miles 2. How good an approximation does the semivariable-cost pattern provide if the department's rel- evant range is 40,000 to 60,000 miles per month? What if the relevant range is 20,000 to 90.000 miles per month