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 ofY=a+bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows:

MonthHours of Maintenance

ServiceMaintenance

Costs January540$4,752

February4804,250

March2802,750

April4904,270

May3402,980

June4704,150

July3303,020

August4303,570

September4604,000

October3503,300

November3803,190

December3303,130

Total4,880$43,362

Average407*$3,614*

*Rounded

rev: 05_30_2018_QC_CS-128090

1. Compute the variable cost per hour and the fixed cost per hour at 650 hours of activity.(Round your answers to 2 decimal places.)
2. Compute the predicted maintenance cost at 640 hours of activity.
3. Using your answer to requirement (1), what is the variable component of the maintenance cost?(Round your answer to two decimal places.)
4. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nation's Capital Fitness, Inc. Express the cost behavior pattern in equation form.(Round coefficient ofXto 2 decimal places and other answer to the nearest whole dollar amount.)