1. Which of the following is a disadvantage to the least squares method? a.) It is relatively simple to use b.) It produces more accurate estimates c) It considers all data points d.). It may be costly to use 2. Product costs may be expensed in a later period a) TRUE b.) FALSE 3. Pick the option in increasing order of reliability a) Least squares, high-low method and scattergraph b) Least squares, scattergraph and high-low method c) high-low method, scattergraph and least squares d.) high-low method, least squares and scattergraph 4. costs that increase as the volume activity increases within the relevant range: a) variable cost per unit b.) average fixed cost per unit c.) total fixed cost d.) total variable costs 5. Weaknesses of the high-low method include all of the following except a) the highest and lowest activity might not be representative of the population b.) only two activities/observations are used to develop the estimates c) this method cannot estimate the total costs if there are more than one variables d.) this involves complex mathematical calculations 6. Faith, Inc. wants to develop a cost estimating technique for its utility consumption every month. The following utility expense were incurred in the following months Month January February March April May Utility Cost 8,520 7,628 5,712 6,746 ??? Direct Labor Hours 1809 1421 912 1102 870 Using the high-low method method, how much is the total cost during the month of May? a.) 5.231 b) 5,671) c) 5,581 d.) 5,421 7. Jhojarrah, Inc. has the following budgeted overhead formula for 2020, y-1,006,969 25 per machine hours. The formula is expected to continue until the next five years prior to review of current business processes. If for the month of January 2021, the company incurred P333,914. Each unit requires 2 machine hours to complete. How many units were produced during the month of January? a) 13,461 b.) 10,000 c) 5,000 d.) 26,922