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The controller of Hall Industries has collected the following monthly expense data for use in...

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Finance

The controller of Hall 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 $2,640 3,500
February 3,000 4,000
March 3,600 6,000
April 4,500 7,900
May 3,200 5,000
June 4,620 8,000

(b)

Prepare a graph showing the behavior of maintenance costs and identify the fixed-and variable-cost elements. Use 2,000-hour increments and $1,000 cost increments.

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