Question 1 ABC company incurred the following maintainance costs during the past 6 months Table 1 Months 1 2 3 4 5 6 7 8 9 Machine hours 2200 1000 1200 1600 1300 1900 2000 2300 900 Cost 8560 4200 5920 6280 4020 7020 8400 9500 3200 REQUIRED Question 1 1. Use a scatter graph and the two points that seem to best represent the relationship between cost and activity levels of 1000 and 2000 machine hours. Use these two points, estimate the variable cost and the fixed cost [components of maintenance costs] 2. Develop a cost function that the company can use to estimate maintenance cost at different volume levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours Question 2 A. Use the data on Table 1. estimate the variable and fixed cost of the company using the high and low method B. Develop a cost function for the company. C. Estimate the maintenance cost if 3000 machine hours were used in July Question 3 D. Use the data on Table 1. estimate the variable and fixed cost of the company using the least squares method E. Develop a cost function for the company. F. Estimate the maintenance cost if 2500 machine hours were used in July