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		520			$	4470
February		490				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
September		470				4,050
October		350				3,300
November		340				3,160
December		320				3,030
Total		4,800			$	43,200
Average		400			$	3,600

Required:

1. using the high-low method cost of 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 decimals places and other answer to the nearest whole dollar amount.)

2. Using the 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 answer to 2 decimal places)