Sydney Company Makes Weather Balloons Required: A

Sydney Company makes weather balloons.The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred by the factory.Data for the past six months were collected. $\begin{array}{lrr}\text { Month } & \text { Maintenance } & \text { Machine } \\& \text { cost } & \text { hours }\\\text { January } & \$ 10,120 & 526 \\\text { February } & 9,560 & 389 \\\text { March } & 9,712 & 412 \\\text { April } & 10,460 & 569 \\\text { May } & 10,226 & 541 \\\text { June } & 9,686 & 399\end{array}$ Required: A. Using the high low method, calcul ate the fixed cost of maintenance and the variable rate
per machine hour.
B. Using the high low method, construct the cost formul a for the total maintenance cost.
C. Calculate the budgeted cost for maintenance assuming that 700 hours are worked next month.