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Item 2

Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours:

Month	Maintenance Costs	Machine Hours
1	$ 2,790	1,880
2	2,950	1,960
3	3,100	2,040
4	3,210	2,060
5	3,290	2,090
6	3,260	2,070
7	3,200	2,050
8	3,040	2,030
9	2,810	1,890
10	2,410	1,290
11	2,420	1,490
12	2,640	1,780

Required:

1. What is the cost equation for maintenance costs using the high-low method?

2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

Ethan Manufacturing incorporated ptoduces foor mats for atitomotiles. The owner, Josthh Ethish. Has bsked you to assist in estumating mantenancecosts. Togetivet, you and Joseph determwed that the single beht cost driver for maintenance costs is machine houis. These dala are from the prevous ficcal yeat for mainterance costs and machine hourt: Reculrect: 1. What is the cost equation fot maintenance costs uking the highilowimethod? 2. Calculate the mean absci ite percentage error (Maffin for the cost equation you developed in requirement. 1. Complete this question by entering yaeir answers in the tabs below