What would the expected maintenance costs be for july

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Reference no: EM13579922

The controller of Teton 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

$2,900

300

February

3,000

400

March

3,600

600

April

4,300

790

May

3,200

500

June

4,500

800

Instructions

  1. Determine the fixed and variable cost components using the high-low method.
  2. What would the expected maintenance costs be for July assuming the company expects to operate at a level of 920 machine hours?

Reference no: EM13579922

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