Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 (21 MARKS) The following data were collected for the period January 2019 to December 2019 by the cost accountant in one of United

image text in transcribed

QUESTION 2 (21 MARKS) The following data were collected for the period January 2019 to December 2019 by the cost accountant in one of United (Pty) Ltd, ("United") manufacturing plants. Electricity Cost (NS) Machine hours Month January February March April May June July August September October November December 1600 1 510 1 500 1 450 1 460 1 520 1 570 1 530 1 480 1 470 1 450 1 460 2 790 2 680 2 600 2 500 2 510 2 610 2 750 2 700 2 530 2 520 2 490 2 520 United operates in a job costing system environment. One of their customer JKL Enterprises (JKL") has approached them for a quotation for a job. United's management accountant has estimated that the JKL job will require 2 350 hours. However, the management accountant has resigned with immediate effect and United are eager to know how much electricity they will incur so that they can provide a quote to JKL. Mark Required: Using the least squares regression method, determine the total electricity cost that will be incurred for the JKL job. Round off your estimates to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Cataldo Cpa II, Cma Cgma A J

2nd Edition

1634929241, 978-1634929240

More Books

Students also viewed these Accounting questions

Question

7.3 Describe considerations in the preliminary applicant screening.

Answered: 1 week ago

Question

7.2 Explain the selection process.

Answered: 1 week ago