Determine the fixed- and variable-cost components

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Reference no: EM132219647

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

Month	Total Maintenance Costs	Total Machine Hours
January	RM2,750	3,500
February	3,000	4,000
March	3,600	6,000
April	4,500	7,900
May	3,200	5,000
June	5,000	8,000

a) Determine the fixed- and variable-cost components using 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 RM1,000 cost increments.

Reference no: EM132219647

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