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DoKnow Co. like to estimate the variable and fixed cost components of its maintenance cost and has compiled the following data for the last
DoKnow Co. like to estimate the variable and fixed cost components of its maintenance cost and has compiled the following data for the last 6 months of operation: January February March April May June Labor hours Maintenance cost P6,170 5,530 5,230 5,960 6,230 5,320 190 130 110 180 190 110 Answer the following. Show solutions. All answers in two decimal places. 1. Compute for the summation of XY. 2. Compute for the summation of X squared. 3. Using Hi-Lo method, what is the estimated fixed cost per month for maintenance 4. Using the least square method, what is the estimated variable cost per labor hour. 5. If the company will use 230 labor hours in July, what would be the estimated variable cost per labor hour for maintenance using Hi-Lo method. 6. What is the estimated fixed cost per month for maintenance if least square method is used? 7. If the company will use 230 hours labor hours in July, what would be the total predicted cost of maintenance? 8. How much is the total variable cost of maintenance if least square method is used assuming 150 labor hours is consumed in July? 9. What is the predicted cost of Maintenance for the nonth of July assuming 150 labor hours are consumed if least square method is used.
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To solve the questions we need to perform the necessary calculations using the given data Lets go step by step Step 1 Compute the summation of XY the product of labor hours and maintenance cost Januar...Get Instant Access to Expert-Tailored Solutions
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