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GROUP WORK QUESTION: The accountants at XZ Manufacturing Company are trying to calculate a cost function for maintenance costs in order to plan for next
GROUP WORK QUESTION: The accountants at XZ Manufacturing Company are trying to calculate a cost function for maintenance costs in order to plan for next year's maintenance cost. They collect the following data for the last complete calendar year. REQUIRED: 1. Help the accountants decide which is the best cost driver for maintenance costs. Use an appropriate technique of your choice to make this decision. ( 2 marks) 2. Calculate the maintenance cost function using an appropriate technique. Write the cost function in the form Y=a+bX. (2 marks) 3. If the accountants expect a production volume of 650 units and 3,600 machine hours in the coming month, how much maintenance costs would you expect? (1 mark) Show your calculations
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