Question 2: As part of his job as a cost analyst, Max Thompson collected the following information conceming the operations of the Machining Department Total Operating Costs $45.000 49.500 45.750 48.000 49,300 Observation January February March April May Machine-hours 4,000 4,600 3.800 4400 4,500 Required: a) Use the high-low method to determine the estimating cost function with machine hours as the cost driver (3% marks) 49500-454ou7.S TFe = T-T 241500-7.5 y4co Isou Y= IS0 00-7.sz b) If June's estimated machine-hours total 4.200, what are the total estimated costs of the Machining Department? (1% marks" Y - 1s-00 t 7.5 (420) Y46s00 c) Consider variable operating cost per machine hour "b" calculated above. If it t machine hours to produce one unit and total 2,000 units are produced, then c total variable operating cost (1 mark) 3YLOOto 13 7. 5 7.S (G000) 45000 d) How high-low method is different from regression method? and what is the m advantage of using the high-low method for cost estimation? (1 mark) Question 2: As part of his job as a cost analyst, Max Thompson collected the following information conceming the operations of the Machining Department Total Operating Costs $45.000 49.500 45.750 48.000 49,300 Observation January February March April May Machine-hours 4,000 4,600 3.800 4400 4,500 Required: a) Use the high-low method to determine the estimating cost function with machine hours as the cost driver (3% marks) 49500-454ou7.S TFe = T-T 241500-7.5 y4co Isou Y= IS0 00-7.sz b) If June's estimated machine-hours total 4.200, what are the total estimated costs of the Machining Department? (1% marks" Y - 1s-00 t 7.5 (420) Y46s00 c) Consider variable operating cost per machine hour "b" calculated above. If it t machine hours to produce one unit and total 2,000 units are produced, then c total variable operating cost (1 mark) 3YLOOto 13 7. 5 7.S (G000) 45000 d) How high-low method is different from regression method? and what is the m advantage of using the high-low method for cost estimation? (1 mark)