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Required information [The following information applies to the questions displayed below.) Nation's Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop an equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service 560 480 290 460 340 480 370 430 460 370 380 350 4,970 414* Maintenance Costs $ 5,325 4,220 2,760 4,340 2,970 4,120 3,000 3,570 3,970 3,280 3,190 3,070 $43,815 $ 3,651* * Rounded 2. Using your answer to requirement (1), what is the variable component of the maintenance cost? (Round your answer to two decimal places.) Variable maintenance cost per hour 13. Compute the predicted maintenance cost at 600 hours of activity. Maintenance cost 4-a. Compute the variable cost per hour and the fixed cost per hour at 610 hours of activity. (Round your answers to 2 decimal places.) Variable cost per hour Fixed cost per hour 4-b. Why is the fixed cost per hour possibly misleading? Because it will change as the number of hours changes. Because it will not change as the number of hours changes. Required information [The following information applies to the questions displayed below.) Nation's Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop an equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service 560 480 290 460 340 480 370 430 460 370 380 350 4,970 414* Maintenance Costs $ 5,325 4,220 2,760 4,340 2,970 4,120 3,000 3,570 3,970 3,280 3,190 3,070 $43,815 $ 3,651* * Rounded 2. Using your answer to requirement (1), what is the variable component of the maintenance cost? (Round your answer to two decimal places.) Variable maintenance cost per hour 13. Compute the predicted maintenance cost at 600 hours of activity. Maintenance cost 4-a. Compute the variable cost per hour and the fixed cost per hour at 610 hours of activity. (Round your answers to 2 decimal places.) Variable cost per hour Fixed cost per hour 4-b. Why is the fixed cost per hour possibly misleading? Because it will change as the number of hours changes. Because it will not change as the number of hours changes