The controller of Sedgwick 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 2,000-hour increments and $1,000 costincrements.

Transcribed Image Text:

Total Maintenance Costs $2,800 3,000 3,600 4,500 3,200 5,000 Total Machine Hours 3,000 4,000 6,000 7,900 5,000 8,000 Month January February March April May une