The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Instructions
(a) Determine the fixed- and variable-cost components using the high-low method.
(b) Prepare a graph showing the behavior of maintenance costs and identify the fixed- and variable-cost elements. Use 2,000-hour increments and 51,000 cost increments.

Transcribed Image Text:

Total Maintenance Costs $2,640 3,000 3,600 4,500 3,200 4,620 Total Machine Hours Month January February March April May 3,500 4,000 6,000 7,900 5,000 8,000 ine