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Determine the fixed and variable cost components

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Question - The controller of Dugan 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

$2,600

420

February

3,200

520

March

3,800

720

April

4,700

910

May

3,400

620

June

5,300

920

Determine the fixed and variable cost components using the high-low method.

Reference no: EM131767506

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