Nations Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms 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	Hours of Maintenance Service					Maintenance Costs
January			530				$	5,136
February			480					4,260
March			270					2,770
April			480					4,310
May			330					3,010
June			470					4,110
July			360					3,040
August			440					3,580
September			460					4,020
October			360					3,280
November			370					3,170
December			360					3,120
Total			4,910				$	43,806
Average			409	*			$	3,651	*

1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nations 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 2 decimal places.)

3. Compute the predicted maintenance cost at 600 hours of activity.

4. Compute the variable cost per hour and the fixed cost per hour at 610 hours of activity. (Round your answers to 2 decimal places.)