E22-2 (a)
The controller of Dugan Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
|
Month |
Total |
Maintenance |
Costs |
Total Machine Hours |
|
January |
2,400 |
300 |
||
|
February |
3,000 |
400 |
||
|
March |
3,600 |
600 |
||
|
April |
4,500 |
790 |
||
|
May |
3,200 |
500 |
||
|
June |
4,900 |
800 |
Instructions
a. Determine the fixed and variable cost components using the high-low method.