EXERCISE IN QUANTITATIVE TECHNIQUES CPA Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: Hours of Activity Maintenance Costs January 480 P 4200 February 320 3000 March 400 3600 April 300 2820 May 500 4350 June 310 2960 July 320 3030 August 520 4470 September 490 4260 October 470 4050 November 350 3300 December 340 3160 REQUIRED: a. If CPA Company uses the high low method of analysis, what will be the equation for the relationship between hours of activity and maintenance cost? b. Based on the equation obtained above, what will be the budgeted maintenance costs given 500 maintenance hours in a month? c. If CPA Company uses the least squares method, what will be the equation for the relationship between hours of activity and maintenance cost? d. Based on the equation obtained above, what will be the budgeted maintenance costs given 450 maintenance hours in a month