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Question - Muffler Incorporated produces floor mats for cars and trucks. The owner, Kenneth Muffler, asked you to assist him in estimating his maintenance costs. Together, Mr. Muffler and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours:
Month
Maintenance Expense
Machine Hours
1
$ 3,280
2,280
2
3,470
2,380
3
3,650
2,480
4
3,780
2,510
5
2,360
6
4,000
2,520
7
3,770
2,500
8
3,580
2,470
9
3,300
2,290
10
2,960
2,160
11
2,860
1,750
12
3,040
2,150
Required - Using the high-low method, determine the total monthly fixed cost?
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