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X Company uses the high-low method to predict maintenance costs each month, with maintenance hours as the activity measure. The following past monthly cost and
X Company uses the high-low method to predict maintenance costs each month, with maintenance hours as the activity measure. The following past monthly cost and activity information is available:
Month | Cost | Hours |
May | $6,712 | 1,450 |
June | $11,553 | 3,800 |
July | $14,231 | 5,100 |
August | $11,965 | 4,000 |
If maintenance hours in October are expected to be $3,550, what are total fixed maintenance costs expected to be (round unit costs to the nearest cent)?
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