Question
Item 5 Item 5 Part 4 of 4 2.85 points Required information [The following information applies to the questions displayed below.] Nations Capital Fitness, Inc.
Item 5
Item 5 Part 4 of 4 2.85 points
Required information
[The following information applies to the questions displayed below.]
Nations Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms 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 | Hours of Maintenance Service | Maintenance Costs | ||||||
January | 550 | $ | 5,003 | |||||
February | 490 | 4,250 | ||||||
March | 260 | 2,770 | ||||||
April | 450 | 4,280 | ||||||
May | 360 | 2,990 | ||||||
June | 440 | 4,200 | ||||||
July | 360 | 3,060 | ||||||
August | 410 | 3,590 | ||||||
September | 480 | 3,960 | ||||||
October | 390 | 3,210 | ||||||
November | 380 | 3,250 | ||||||
December | 350 | 3,090 | ||||||
Total | 4,920 | $ | 43,653 | |||||
Average | 410 | * | $ | 3,638 | * | |||
*Rounded
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4-a. Compute the variable cost per hour and the fixed cost per hour at 610 hours of activity. (Round your answers to 2 decimal
Item 5
Item 5 Part 4 of 4 2.85 pointsRequired information
[The following information applies to the questions displayed below.]
Nations Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms 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 Hours of Maintenance Service Maintenance Costs January 550 $ 5,003 February 490 4,250 March 260 2,770 April 450 4,280 May 360 2,990 June 440 4,200 July 360 3,060 August 410 3,590 September 480 3,960 October 390 3,210 November 380 3,250 December 350 3,090 Total 4,920 $ 43,653 Average 410 * $ 3,638 * *Rounded
rev: 05_30_2018_QC_CS-128090
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4-a. Compute the variable cost per hour and the fixed cost per hour at 610 hours of activity. (Round your answers to 2 decimal place
Variable cost per hour
Fixed Cost per hour
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