Question: Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 18,000 machine hours of activity, total maintenance costs averaged $47.50

Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 18,000 machine hours of activity, total maintenance costs averaged $47.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $37.50. On the basis of this information, what were total maintenance costs when Swan experienced 23,000 machine hours?

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