Jaimie is the accountant for Albedo Inc. manufactures. She has been asked to provide estimate of the company's maintenance cost for the next year.

Jaimie has identified labour hours as the most suitable cost driver and gathered cost information during the previous 12 months:

Month

Maintenance cost

Labour hours

January

$3,210

2,750

February

4,650

3,900

March

6,000

4,000

April

3,350

2,690

May

3,100

2,500

June

2,950

2,580

July

4,000

1,500

August

2,850

2,500

September

4,120

3,160

October

4,350

3,325

November

3,500

2,780

December

3,775

3,000

Required:

1. Use the high-low method to estimate the company's maintenance cost behaviour and express it in equation form.

2. Predict the maintenance cost for a month in which 4,800 labour hours.