Travis Inc. employed several maintenance engineers to keep the equipment running in peak condition. Over the past eight months, Travis incurred the following maintenance cost for these engineers. Plant activity is best measured by direct labor hours. Month Direct Labor Hours Maintenance Cost January 1,700 $14,300 February 1,900 $15,200 March 1,800 $16,700 April 1,600 $14,000 May 1,500 $14,300 June 1,300 $13,000 July 1,100 $12,800 August 1,400 $14,200 Required: Using the high-low method, determine the fixed and variable components of the maintenance costs.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Travis Inc. employed several maintenance engineers to keep the equipment running in

peak condition. Over the past eight months, Travis incurred the following maintenance

cost for these engineers. Plant activity is best measured by direct labor hours.

Month Direct Labor Hours Maintenance Cost

January 1,700 $14,300

February 1,900 $15,200

March 1,800 $16,700

April 1,600 $14,000

May 1,500 $14,300

June 1,300 $13,000

July 1,100 $12,800

August 1,400 $14,200

Required: Using the high-low method, determine the fixed and variable

components of the maintenance costs.

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