Question
A manufacturing manager collected the following information for the Production Department: Observation Machine-hours Total Operating Costs January 8,000 60,000 February 9,200 66,000 March 7,600 61,000
A manufacturing manager collected the following information for the Production Department:
Observation
Machine-hours
Total Operating Costs
January
8,000
60,000
February
9,200
66,000
March
7,600
61,000
April
8,800
64,000
May
9,000
65,000
June
6,100
61,000
July
9,300
68,000
Required:
Determine the estimating cost function with machine-hours as the cost driver using the high-low method. Express your results in the form of a linear equation y = a + bx.
If Augusts estimated machine-hours total 9,600, what is the estimated cost of the Production Department?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cases In Auditing
Authors: Josephine Maltby
2nd Edition
1853963127, 978-1853963124
