Question 2

The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Month		Total Maintenance Costs			Total Machine Hours
January		$2,860			300
February		3,160			350
March		3,760			500
April		4,660			690
May		3,360			500
June		5,420			700

a.Determine the variable cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)

-Variable cost per machine hour = ____________$

b.Determine the fixed cost components using the high-low method.

-Total Fixed costs =____________$