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Cost Classification and Estimation Chapter 2: A Closer look on Cost Accounting P7.37 per machine hour plus P65,670 per month Using the least square regression method, the estimated monthly fixed component of inspection cost is: b. P8. 19 per machine hour plus P62,015 per month a. P580 c. P7.55 per machine hour plus P64,859 per month b. P525 c. P561 d. P22.11 per machine hour plus P98,497 per month d. P572 71. The management of Goo Goo Dolls believes that the number of cakes baked 73. Mang Jose's inspection costs are listed below: each month is an appropriate activity measure for total operating cost. Units Produced Maintenance Costs Shown below are the number of cakes baked and the operating costs in January February 119 117 8,558 each of the last three months: March 113 8,535 Cakes Baked Operating Cost P2,600 April May 125 8,415 January 12 152 8,736 February 18 P2,990 June 9,357 March 20 P3,250 July 108 120 8,320 August 8,603 What is Goo Goo Dolls cost formula for monthly operating cost using the 192 10,337 least square regression method? a. Y = P8,840 + P176.80x C. Y = P1,625 + P81.25x Management believes that the maintenance cost is a mixed cost that b. Y = P1,655 + P77.50x d. Y = P478.40 + P176.80x depends on the number of units produced. Using the least square regression method, the estimates of the variable and fixed components of 72. Joven Corporation has provided the following data for the first five months maintenance cost would be closest to: of operations: b. a. P24.01 per unit plus P5,727 per month Machine hours Inspection Cost C. P24.08 per unit plus P5,709 per month January 120 750 d. P67.74 per unit plus P8,858 per month P24.37 per unit plus P5,658 per month February 160 800 March 200 870 April 150 790 May 170 840 Using the high-low method, the estimated variable inspection cost per machine hour is: a. P1.50 C. P1.40 b. P0.67 d. P1.25 Using high-low method, the estimated monthly fixed component of inspection cost is: a. P565 c. P560 b. P570 d. P585 Using the least square regression method, the estimated variable inspection cost per machine hour is: a. P1.28 C. PO.80 b. P1.40 d. P1.56 118 119