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Old MathJax webview Please show the work in excel The ABC Company believes that R&M cost is a semi-variable cost that needs to be split
Old MathJax webview
Please show the work in excel
The ABC Company believes that R&M cost is a semi-variable cost that needs to be split into separate fixed R&M cost and variable R&M cost using simple regression analysis. They also believe that the variable R&M cost is a function of machine hours. The ABC Company collected data from the accounting records for the first 8 months of 2016 which appears below: Month 1 2 3 4 5 6 7 8 MH (x) 1,520 1,250 1,750 1,600 2,350 2,100 3,000 2,750 R&M Cost (y) $36,375 38,000 41,750 42,360 55,080 48,100 59,000 56,800 Required: 1. Use the Regression Analysis excel add-in and print out your result. 2. Use the scatter diagram function (under insert) to find the line of regression and R2. Print out the chart. 3. On your worksheet, "type-in" answers to the following 3 questions: A. What is the simple regression equation? B. What is the R2 and what does it show? C. What is the forecasted total R & M cost for month 9 if 4,000 MH are predictedStep by Step Solution
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