f4 Required information [The following information applies to the questions displayed below.] Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop 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: Month January Hours of Maintenance Service Maintenance Costs $ 5,388 540 bok February 450 4,220 int March April May June July 250 2,720 480 4,300 360 3,000 430 4,100 350 3,090 August 410 3,550 September 460 3,960 October 370 3,280. rences November 370 3,210 December 360 3,030 Total 4,830 $43,848 Average "Rounded 403* $ 3,654 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. (Round coefficient of X to 2 decimal places and other answer to the nearest whole dollar amount.) Monthly maintenance cost < Prev 5 6 7 8 of 9 Next > ces Required information [The following information applies to the questions displayed below.] Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop 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 Maintenance. Month January February March April Service 540 Maintenance Costa $ 5,388 450 4,220. 250 2,720 480 4,300 May June 360 3,000 430 4,100 July 350 3,090 August 410 3,550 September 460 3,960 October 370 3,280 November 370 3,210 December 360 3,030 Total 4,830 $43,848 Average 403 $ 3,654 *Rounded 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? (Round your answel to 2 decimal places.) Variable maintenance cost per hour its 3 of 4 Required information [The following information applies to the questions displayed below.) Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop 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 Maintenance eBook March Month January Service 540 Maintenance Costa $ 5,388 February 450 4,220 250 2,720 Print May April 480 4,300 360 3,000 June 430 4,100 July 350 3,090 August 410 3,550 References September 460 3,960 October 370 3,280 November 370 3,210 December 360 3,030 Total 4,830 $43,848 Average 403* $ 3,654 "Rounded ME 3. Compute the predicted maintenance cost at 670 hours of activity. Maintenance cost B of 4 Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop 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 Maintenance Service 540 eBook Month: January February March April May June Maintenance Costs $ 5,388 450. 4,220 250 2,720 480 4,300 360 3,000 430 4,100 July 350 3,090 August 410 3,550 September 460 3,960 October 370 3,280 November 370 3,210 Print December 360 3,030 Total 4,830 $43,848 Average 403 $3,654 References "Rounded 4-a. Compute the variable cost per hour and the fixed cost per hour at 680 hours of activity. (Round your answers to 2 decimal places.) Variable cost per hour Fixed cost per hour