Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers.

1. Labor hours used in maintenance.
2. Numbers of students enrolled.

 

Month	Total Maintenance Cost	Number of hours	Number of students
1	16,690	238	534
2	13,560	194	532
3	13,540	108	534
4	16,060	229	530
5	12,430	101	533
6	20,860	298	537
7	18,240	244	540
8	12,310	98	540
9	13,770	108	541
10	16,990	225	538
11	20,650	289	540
12	14,770	118	539
Next Semester
1
2
3
4
5
6
TOTAL

 

Required:

1. Prepare a Regression Analysis to determine the Cost Function.
2. Assume that the number of students for the first semester for the next year is:

550, 575, 600, 635, 640 and 670

 

3. The numbers of hours is:

210, 225, 230, 245, 250 and 260

Determine the Total Cost for each month for the next year.