The management accounting division of Solar Limited wants to estimate the companys monthly operating costs for the next 6 months. The following cost and other data were gathered for the previous 12 months:

Month	Maintenance Cost	Machine Hours	Health Insurance	No. Of Employees	Shipping Cost	Units Shipped
Feb	$4500	165	$8600	68	$26492	7160
March	$4452	120	$8600	75	$30488	8240
April	$4600	230	$8600	92	$29471	7965
May	$4850	318	$8600	105	$23699	6405
June	$5166	460	$8600	89	$21886	5917
July	$4760	280	$8600	87	$34207	9245
Aug	$4910	340	$8600	93	$32301	8730
Sept	$4960	360	$8600	88	$31136	8415
Oct	$ 5,070	420	$ 8,600	95	$ 25,808	6,975
Nov	$ 5,250	495	$ 8,600	102	$ 26,585	7,185
Dec	$ 5,271	510	$ 8,600	97	$ 20,683	5,590
Jan	$ 4,760	275	$ 8,600	94	$ 35,557	9,610

The maintenance cost is a mixed cost because the cost neither remains constant in total nor remains constant per unit. The health insurance cost is fixed per month because, although the number of employees change from month to month, the total cost remained constant. The shipping cost varies with the number of units shipped. Solar Ltd received a notification from its health insurance company in January. The notice from the insurance company advised that the insurance that the monthly health insurance premium will be increased by 2% commencing April 2021. Solar Ltd also received a notification from its shipping company in December. The notice from the shipping company advised that the shipping charges per shipment would increase by 3.13% from May 2021.

The budgeted data for Solar Limited for the next 6 months is presented below.

Month	Machine hours	No. of employees	Units shipped
February	192	95	9825
March	175	96	9,925
April	225	97	9,975
May	325	98	10,025
June	450	99	10,050
July	290	100	10,125

Required:

(1) Using the highlow method, determine the fixed component of maintenance cost and the variable component of maintenance cost per machine hour.

(2) Combine the answers from the calculation in requirement (1) with the information provided in the case study to estimate monthly maintenance, health insurance and shipping costs for Solar Limited for the period February to July 2021.