Question: High-Low Method Estimation Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for

High-Low Method Estimation

Donner Company would like to estimate the variable and fixed components of its maintenance costs and has compiled the following data for six months of operations.

	Hours	Maintenance Cost
January	160	$7,180
February	170	7,435
March	200	8,500
April	180	7,690
May	130	6,610
June	140	6,670

Requirement 1:

Using the high-low method of analysis, estimate variable cost per labor hour for maintenance. Round to 2 decimal places.

Requirement 2:

High-low method of analysis continued. Using the value calculated in Requirement 1, calculate the total fixed cost per month for maintenance. Round to 2 decimal places.

High-Low Method Estimation Support:

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