The controller of Capital Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Instructions
(a) Determine the fixed and variable cost components using the high-low method.
(b) Prepare a graph showing the behavior of maintenance costs, and identify the fixed and variable cost elements. Use 200-hour increments and $1,000 costincrements.

Transcribed Image Text:

Total Maintenance Costs Total Month Machine Hours $2,400 3,000 3,600 4,500 3,200 4,900 300 400 600 790 500 800 January February March April May Jtine