Martina Fernandez, Managing Director of Evert Tool Co. Ltd, has asked for information about the cost behaviour of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available:

1. Find monthly fixed support cost and the variable support cost per machine-hour by the
high-low method.
2. Explain how your analysis for requirement 1 would change if new October data were
received and machine-hours were 1,700 and support costs were ₤15,800.
3. A least-squares regression analysis gave the following output:

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Month May June July August September Machine hours 850 1,300 1,000 1,250 1,750 Support costs £ 9,000 12,500 7,900 11,400 13,500