Question
Assume that the product manager of ABC Ltd is concerned about the apparent fluctuations in efficiency and therefore work done by employees which are related
Assume that the product manager of ABC Ltd is concerned about the apparent fluctuations in efficiency and therefore work done by employees which are related to the volume. The result of this in most 12 weeks research carried out is as shown below;
Week Machine hours (cost driver) indirect labor costs
25. 68 Shs1,190
26. 88 1,211
27. 62 1,004
28. 72 917
29. 60 770
30. 96 1,456
31. 78 1,180
32. 46 710
33. 82 1,316
34. 94 1,032
35. 68 752
36. 48 963
Find the indirect labor costs associated with 90 machine hours and (b) the machine hours
that Shs1,000 of indirect labor cost would produce. Use the regression method. (20mks)
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