Question
Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data
Margolo Company makes cross-country skis. The company controller wants to calculate the fixed and variable costs associated with janitorial services incurred by the factory. Data for the past six months were collected.
Required
1.) Prepare an Excel file that shows your calculation of the cost formula for fixed and variable costs associated with janitorial services for Margolo Co. utilizing the high-low method.
2.) In that same Excel file, calculate the cost formula for fixed and variable costs associated with janitorial services for Margolo Co. utilizing the method of least squares (regression) method. Refer to Appendix 5A for assistance.
3.) If Margola is estimating 11,320 labor hours in July, what is the total estimated janitorial cost utilizing your cost formula obtained from the high-low method at #1?
4.) If Margola is estimating 11,320 labor hours in July, what is the total estimated janitorial cost utilizing your cost formula obtained from the regression analysis at #2?
Month January February March April May June $9,200 8,800 9,350 9,620 8,400 9,400 10,120 9,500 10,500 11,100 8,660 10,650Step by Step Solution
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