The following are the maintenance costs incurred in a machine shop for six months with corresponding machine hours:
Month |
Machine Hours |
Maintenance Cost Rs. |
July |
4,000 |
600 |
August |
4,400 |
640 |
September |
3,400 |
540 |
October |
4,800 |
680 |
November |
3,600 |
560 |
December |
3,800 |
580 |
24,000 |
3,600 |
You are required to segregate the maintenance cost which is semi-variable into fixed and variable elements by using Range method.