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 Maintenance Month Service Costs January 560 $ 5,548 February 470 4, 180 March 250 2, 820 April 480 4, 340 May 360 3, 030 June 440 4,180 July 350 3,050 August 400 3, 570 September 470 3,960 October 400 3, 270 November 360 3,180 December 330 3, 090 Total 4,870 $44 , 218 Average 406* $ 3,685* Rounded