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:

Month Hours

of Maintenance

Service Maintenance Costs

January 520 $4,470

February490 4,260

March 300 2,820

April 500 4,350

May 310 2,960

June 480 4,200

July 320 3,000

August 400 3,600

September470 4,050

October 350 3,300

November340 3,160

December320 3,030

Total 4,800 $43,200

Average 400 $3,600

Required:

1. 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 of X to 2 decimal places and other answer to the nearest whole dollar amount.)
2. Using your answer to requirement (1), what is the variable component of the maintenance cost?(Round your answer to two decimal places.)
3. Compute the predicted maintenance cost at 590 hours of activity.
4. Compute the variable cost per hour and the fixed cost per hour at 600 hours of activity.(Round your answers to 2 decimal places.)