Isidro Infante, president of Padilla Window and Doors CORP, present the following information about the cost behavior of the manufacturing assembly costs. He wants to know and determine how much of the manufacturing assembly cost are fixed and how much variable. Offer the following data asking for your help with the analysis of the Assembly Cost Overhead. Direct Material is $35.00 per unit and the Direct Manufacturing Labor is $10.00 per hour.

Month	Machine Hours	Assembly Costs
May	1,700	$18,000
June	2,600	25,000
July	2,000	15,800
August	2,500	22,800
September	3,500	27,000
October	1,800	19,100
November	2,850	25,250
December	3,600	29,200

Required:

1. Using the High Low method, determine the:

a. Manufacturing assembly variable cost per unit.

b. Manufacturing assembly fixed cost

c. The resulting cost function

d. If 1950 machine hours are expected for January, which is the total cost using the cost function of requirement c.

2. Complete the table with the followings titles

2. A Least square regression analysis is required. Determine the:

a. Manufacturing assembly variable cost per unit.

1. Use the Variable Cost per unit Formula shown in classroom

nXY-(X)(Y)nX2-(X)(X)

2. Confirm with Linest

b. Manufacturing assembly fixed cost

3. Use the Fixed Cost Total shown in the classroom.

YX2-(X)(XY)nX2-(X)(X)

4. Confirm with Intercept

c. The resulting cost function for the Assembly Cost Overhead.

d. If 3450 machine hours are expected for January, which is the total cost using the cost function of requirement c.

3. Determine the goodness of fit

a. Square R using the formula shown in classroom

R² = 1 - (Y-y)2(Y-2

b. Interpret the least square result, indicating its limitations

4. Present the corresponding table with the required columns and the Excel Summary Output of the Regression.

5. Shows the formulas uses in Excel for the Assembly Cost Overhead.

6. Determine the Cost Function for the whole manufacturing process.