Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, DC, area. The firm's controller is accumulating data to be used

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, DC, 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 550 Maintenance Costs $ 4,772 February 470 4,210 March 280 2,720 April 470 4,280 May 330 2,970 June 460 4,170 July 350 3,090 August 420 3,530 September 460 3,960 October 380 3,270 November 360 3,180 December 370 3,030 Total 4,900 $43,182 Average 408 $ 3,599* "Rounded

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core concepts of accounting information systems

Authors: Jacob M. Rose, Mark G. Simkin, Carolyn Strand Norman

13th edition

978-1-119-0332, 1118742931, 978-1118742938

More Books

Students also viewed these Accounting questions

Question

Explain the operation of the dividends received deduction.

Answered: 1 week ago

Question

What is an accrued revenue? Give an example.AppendixLO1

Answered: 1 week ago