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Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph
Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month 1 2 3 4 5 6 7 8 9 10 11 12 Maintenance Costs $2,620 2,780 2,930 3,040 3,120 3,090 3,030 2,870 2,640 2,240 2,250 2,470 Machine Hours 1,710 1,790 1,870 1,890 1,920 1,900 1,880 1,860 1,720 1,120 1,320 1,610 Required: 1. What is the cost equation for maintenance costs using the high-low method? Complete this question by entering your answers in the tabs below. Required 1 What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit places. Include outliers in your calculations.) Maintenance costs )
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