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The controller of Ivanhoe Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance
The controller of Ivanhoe Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
| Month | Total Maintenance Costs | Total Machine Hours | |||
|---|---|---|---|---|---|
| January | $2,630 | 340 | |||
| February | 2,930 | 390 | |||
| March | 3,530 | 540 | |||
| April | 4,430 | 650 | |||
| May | 3,130 | 540 | |||
| June | 5,230 | 740 | |||
1. Determine the variable cost components using the high-low method. (write out each step and why)
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