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The controller of Dugan Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
MONTH- MAINTENANCE COST MACHINE HOURS
January $2,400 300February 3,000 400March 3,600 600April 4,500 790May 3,200 500June 4,900 800
Instructions
Prepare a graph showing the behavior of maintenance costs, and identify the fixed and variable cost elements. Use 200 unit increments and $1,000 cost increments.
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