The following information is available for a company’s maintenance cost over the last seven months. Using the high low method, estimate both the fixed and variable components of its maintenance cost.
|
Month |
Maintenance Hours |
Maintenance Cost |
|
June |
20 |
$6,020 |
|
July |
48 |
8,100 |
|
August |
24 |
5,100 |
|
September |
38 |
7,000 |
|
October |
42 |
6,900 |
|
November |
36 |
6,900 |
|
December |
12 |
3,600 |