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Title Subtitle Subtle lu-ats x,x'a-y.A-1 :-a- Norma] 1NoSpac Heading 1 Headirg 2 3-A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president

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Title Subtitle Subtle lu-ats x,x'a-y.A-1 :-a- Norma] 1NoSpac" Heading 1 Headirg 2 3-A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: Month Machine Hours Support Costs May June 1,700 1,600 1,500 1,400 1,300 $ 22,000 21,000 19,500 18,500 18,000 August September 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,650 and support costs were $24,000 3. A least-squares regression analysis gave the following output Regression equation: Y $4,050 $10.50 X What recommendations would you give the president based on these analyses

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