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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 | $2,650 | 2,900 | |||||
February | 3,300 | 4,000 | |||||
March | 3,700 | 6,100 | |||||
April | 4,600 | 8,150 | |||||
May | 3,470 | 5,050 | |||||
June | 5,777 | 8,200 |
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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