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The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs: Month Total Maintenance
The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs:
Month | Total Maintenance Costs | Total Machine Hours | |||||
January | $ 2,670 | 2,900 | |||||
February | 3,400 | 4,350 | |||||
March | 3,600 | 6,450 | |||||
April | 4,590 | 7,900 | |||||
May | 3,440 | 5,000 | |||||
June | 5,773 | 8,250 |
Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places e.g. 12.25.)
Variable cost | $ | per machine hour |
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Determine the fixed cost component using the high-low method.
Fixed cost | $ |
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