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Required information [The following information applies to the questions displayed below] Nation's Capital Fitness, Inc, operates a chain of fitness centers in the Washington, D.C,

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Required information [The following information applies to the questions displayed below] Nation's Capital Fitness, Inc, operates a chain of fitness centers in the Washington, D.C, area. The firm's controller is accumulating dato to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop 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: 4-a. Compute the variable cost per hour and the foced cost per hour at 670 hours of activity. (Round your answers to 2 decimal places.) 4-b. Why is the fixed cost per hour possibly misleading? Because it will not change as the number of hours changes. Because it will charge as the number of hours changes

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