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[The following information applies to the questions displayed below.] Liberty Bell Fitness, Inc. operates a chain of fitness centers in Philadelphia. The firm's controller is
[The following information applies to the questions displayed below.] Liberty Bell Fitness, Inc. operates a chain of fitness centers in Philadelphia. The firm's controller is accumulating data 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 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 Hours of Maintenance Maintenance Costs Month January February March April May June July August September October November December Service 520 460 280 460 320 460 370 410 480 350 350 360 $ 4,980 4,260 2,820 4,290 3,050 4,200 3,060 3,510 4,040 3,280 3,230 3,060 Total 4,820 $43,780 Average 402 3,648 value: 1.00 points 4-a. Compute the variable cost per hour and the fixed cost per hour at 630 hours of activity. (Round your answers to 2 decimal places.) Variable cost per hour Fixed cost per hour
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