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1 Kassena Nakana West District Assembly led by the Chief Executive Officer has asked you as a consultant to advise on the planned one district

1 Kassena Nakana West District Assembly led by the Chief Executive Officer has asked you as a consultant to advise on the planned one district one factory policy as the Assembly plan to establish a Dawadawa Factory. The following recorded data for the past six months on site were presented to you. Month 1 23456 Required: Total cost in (GH) Activity levels (tons) 6,500 80 6,200 60 6,400 72 6,500 75 6,700 83 5,400 66 i) Estimate the fixed cost per month and variable cost per unit using linear regression analysis for the Dawadawa Factory. (5 marks) ii) Estimate the total cost for the following activity level when 75 tons and 90 tons of dawadawa paste is produced for the market. (5 marks) iii) What is the fixed cost when the total cost of GH8,500 is incurred by the factory? (2 marks) iv) Outline the steps when you decide to use High and Low method for cost segregation. (3 marks) (Total: 15 marks)

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