problem solving

Problem 2 Meng Company is preparing a flexible budget for the next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past six months are as follows: Maintenance Costs Machine Hours January P15,500 1,800 February 10,720 1,230 March 15,100 1,740 April 15,840 2,190 May 14.800 1,602 June 10,600 1,590 Required: Compute the following: 1. Estimated variable rate 2. Annual Fixed Costs