QUESTION 3

The following costs were reported by T Daniels Manufacturing Company for six months.

Production level (units) Total costs (4)

February 8 58

March 7 64

April 9 82

May 9 74

June 11 90

July 10 96

Required:

Using the Least Square Method of Linear Regression, determine the:

a. variable cost per unit and total fixed cost (16 marks)

b. total cost at an estimated production level of 12 units and 14 units. (4 marks)

PLEASE TO SHOW DETAILED WORKINGS URGENT