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Required information Skip to question [ The following information applies to the questions displayed below. ] Nation s Capital Fitness, Incorporated, operates a chain of

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Nations Capital Fitness, Incorporated, 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 560 $ 5,253
February 4804,220
March 2702,730
April 4504,270
May 3303,050
June 4604,140
July 3503,010
August 4103,510
September 4904,050
October 4003,280
November 3703,230
December 3503,040
Total 4,920 $ 43,783
Average 410 $ 3,649
Required:
1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nations Capital Fitness, Incorporated. Express the cost behavior pattern in equation form.
Note: Round coefficient of X to 2 decimal places and other answer to the nearest whole dollar amount.

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