Cost Accounting.

Font Alignme Clipboard E F28 D B 1 Information A financial analyst at Cell Corporation is examining the relationship between quarterly utility costs and machine hours for budgeting purposes. The analyst has collected the following quarterly data for Cell's last two years of 2 operation: 3 4 Quarter Machine Hours Utility Costs 5 1 120,000 $ 215,000 6 75,000 150,000 7 3 110,000 200,000 8 4 150,000 270,000 9 5 90,000 170,000 10 6 140,000 250,000 11 7 130,000 225,000 12 8 100,000 195,000 13 14 Part One--High Low Method 2 Use to high-low method to determine Cell's expected utility costs for quarter 9. Currently, Cell Corporation is budgeting to use its machinery for 125,000 15 hours during the upcoming quarter. 16 17 Machine Hours Utility Costs 18 Highest Observation 19 Lowest Observation 10 TT Cell Corp Haywood Manufacturing 5 BIU In Copy Format Painter Clipboard Alignment Font fx F28 D E B Part One--High Low Method 14 Use to high-low method to determine Cell's expected utility costs for quarter 9. Currently, Cell Corporation is budgeting to use its machinery for 125,000 15 hours during the upcoming quarter. 16 17 Machine Hours Utility Costs 18 Highest Observation 19 Lowest Observation 20 Difference (Delta) 21 22 Slope (B) 23 Constant (A) 24 25 Expected Utility Costs for Quarter 9 26 27 Part Two--Regression Analysis Use regression analysis to determine Cell's expected utility costs for quarter 9. Currently, Cell Corporation is budgeting to use its machinery for 125,000 28 hours during the upcoming quarter. 29 30 Slope (B) 31 Constant (A) 32 33 Expected Utility Costs for Quarter 9 34 35 Cell Corp Haywood Manufacturing