WileyPLUS WileyPLUS The controller of Hall Industries has collected the followin

Question

WileyPLUS WileyPLUS The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April 3,273 3,928 4,909 3,491 5,040 3,818 4,364 6,546 8,619 5,455 8,728 Round variable cost to 2 decimal plac2 Determine the fixed cost components using the high-low method. (Round answer to O decimal places e.g. 2,520.) Fixed costs Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(5040-2880)/(8728-3818)

which is equal to

=$0.44 per machine hour(Approx).

Fixed cost=5040-(8728*0.44)

which is equal to

=$1200(Approx).

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