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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

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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 pattem 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. Problem 6-38 Part 4 4.a. Compute the variable cost ner hour and the fixed cost nes nour at 570 hours of activity (Round your answers to 2 dec imat ploc es.) 4.b. Wily is ine fixed cost per hour pos uby muleacingf Becauce it will not change as the number of tiouit changen. Becousen wil change as the nurnber of hours chisngei

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