Using the high-low method and the Willco data, calculate the variable maintenance cost per machine hour (round to three decimal places).

Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months:

Month Machine Hours Maintenance Costs

January 30,000 62,000

February 42,300 74,500

March 37,500 65,900

April 39,000 68,750

May 40,000 74,000

June 35,000 64,500

• $1.016/hr
• $0.976/hr.
• $1.250/hr.
• $1.863/hr.

and what is the approximate fixed cost component of the monthly maintenance costs?

• $31,520
• $34,755
• $33,860
• $32,715