E3.25 Estimating cost behaviour; high-low method: manufacturer Daisy Wong is the accountant for the Multidex Manufacturing Company. She has been asked by one of LO 3.9 Multidex Manufacturing's senior managers to provide an estimate of the firm's utilities costs using the high-low method. Daisy has identified machine hours as the most suitable cost driver. The following costs were incurred during the previous 12 months: Month Machine hours Utilities cost January 105 000 $70 200 February 63000 66 300 March 66000 66000 April 72000 67 350 May 90 000 68 700 June 96000 70 050 July 120 000 84 000 August 90 000 68 400 September 90 000 69 000 October 84 000 68 100 November 123 000 72 300 December 117 000 74 850Required 1. Use the highlow method to estimate the company's utilities cost behaviour and express it In equation form. 2. Predict the utilities cost for a month in which 78000 machine hours are used. 3.26 {a ppendlx] Estimating cost behaviour: regression analysis: manufacturer L0 3.9 Refer to the data In Exercise E325. 3.12 Required 1. Construct an Excel spreadsheet to estimate the company's utllltles cost behaviour. 2. Provide an assessment of the explanatory power of this equation (using the equation and other statistics)