AL Mustapha Company produces different products through automation. The

company incurs largeamount of overheads in the factory on power alone ,

that is semi-variable in nature.

The details of power costs for 6 months ending September,2020 are provided

below.

Months 2020. Machine Hours - Power Cost (OMR)

April 50,000 400,000

May 60,000 460,000

June 40,000 340,000

July 45,000 370,000

August 70,000 520,000

September 75,000 550,000

You are required to use both High and low method and linear regression analysis to separate

the fixedand variable costs .

High and low methods should be calculated by taken the following parameters into

consideration.

1. Calculate the Variable cost per unit .

2. Calculate the Fixed cost

3. Construct the cost function

Linear regression analysis should be calculated by the application of the linear regression