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Rosbell Industries accountant collected the following monthly expenses data for use in analyzing the cost behaviors of the maintenance cost of the new machine. Month

Rosbell Industries accountant collected the following monthly expenses data for use in analyzing the cost behaviors of the maintenance cost of the new machine.

Month

Total MaintenanceCosts

Total MachineHours

January

$1,584

2,100

February

$1,800

2,400

March

$2,160

3,600

April

$2,772

4,800

May

$1,920

3,000

June

$2,700

4,740

  1. Determine the fixed and variable cost components using the high-low method.
  2. Determine the expected Maintenance Cost for the month of July if the company expect to use the machine for 4,900 hours.

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