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