1.M. Munda Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six month, which are representatives for the year, are as follows:

MonthUnits producedProduction costs

April500P4, 000

May700P8, 000

June900P6, 000

July600P7, 500

August800P8, 500

September550P7, 250

The monthly production cost can be expressed as

a.Y = a+ bx

b.Y = b+ax

c.Y = ax + b

d.X = a +by

2.Using the least-square method, the variable production cost per unit is

a.P5

b.P10

c.P0.27

d.P3.74

3.Using the least-square method, the monthly fixed production costis

a.P1, 500

b.P18, 000

c.P4, 350

d.P52, 200

4.If the high-low points method is used, the results when compared to those under the method of least squares are

Variable cost per unitTotal fixed costs

a.EqualEqual

b.Higher by P1.26Lower by P2, 850

c.Lower by P1.26Higher by P2, 850

d. Higher by P5Lower by P1, 500