Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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 $ 4,882
February 450 4,160
March 270 2,750
April 490 4,260
May 340 2,970
June 440 4,190
July 360 3,040
August 400 3,600
September 460 4,030
October 370 3,200
November 360 3,170
December 330 3,070
Total 4,800 $ 43,322
Average 400 * $ 3,610 *

*Rounded

Compute the predicted maintenance cost at 620 hours of activity.

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

Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald W Hilton

6th Edition

0071113142, 978-0071113144

More Books

Students also viewed these Accounting questions

Question

=+b) What is the minimin choice?

Answered: 1 week ago

Question

write about your research methods.

Answered: 1 week ago