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Fixed and Variable Costs: Overhead Following the example in the book, assume that the company represented that overhead was 1 0 0 % fixed and
Fixed and Variable Costs: Overhead Following the example in the book, assume that the company represented that overhead was fixed and zero perce variable. The following data are applicable to these assertions. Techniques graphics and regression are provided. High Low Production of Dths of Natural Gas Total Overhead Variable per oth Technique : Graph oth & Overhead Technique : HighLow High Low Difference Oths Overhead VariableDth Variable Owa Fbed Technique Regression Intercept Slope Total Test the Assertion Production of the of Natural Gas Overhead Fred Varis Variable per ZA TOON ON Acciamante a Assignments: Estimate the fixed and variable portions using the highlow method. b Test the assertion. Using the updated data from techniques and as well as your estimates when applying technique estimate the fixed, variable and variable per dekatherm in the lower matrix Draw two conclusions: Was the company representation accurate? What is a defensible estimate of variable cost per dekatherm?
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