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.