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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
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.
Determine the estimated cost of the work performed each week given the tasks-with their associated costs and schedules-shown in the following table.
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