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Liberty Bell Fitness, Inc. operates a chain of fitness centers in Philadelphia. The firms controller...

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Accounting

Liberty Bell Fitness, Inc. operates a chain of fitness centers in Philadelphia. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y = a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows:
Month Hours of Maintenance Service Maintenance Costs
January 530 $ 4,948
February 480 4,260
March 290 2,740
April 460 4,330
May 320 2,990
June 430 4,140
July 330 3,000
August 430 3,530
September 450 4,000
October 350 3,240
November 360 3,190
December 330 3,050
Total 4,760 $ 43,418
Average 397 $ 3,618
4-a.

Compute the variable cost per hour and the fixed cost per hour at 620 hours of activity. (Round your answers to 2 decimal places.)

Variable cost per hour
Fixed cost per hour

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