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S sunting, 8e Help System Announcements CALCULATO Exercise 5-5 a1-a2 (Video) The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Month January February March April May June $2,643 3,003 3,604 4,505 3,203 4,668 Total Machine Hours 3,500 4,004 6,006 7,908 5,005 8,000 Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $ LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Determine the fixed cost components using the high-low method. Fixed costs 5 Click if you would like to show Work for this question: Qen Show Work

Answer 1

	Total Maintenance Costs	Total Machine Hours
High level of activity	$4,668	8,000
Low level of activity	$2,643	3,500
Change in activity	$2,025	4,500
Variable cost per machine hour	$0.45
($2,025/4,500)
Total maintenance cost at high level of activity	$4,668
Less: Variable cost at high level of activity ($0.45 x 8,000)	$3,600
Fixed costs	$1,068