Rudi P is a caterer who prepares banquets and parties for individual and business functions. He is required to submit estimates to his customers. While he is confident about his estimated costs for food, beverages, and labour costs, he is not certain of his overhead estimate. He has collected actual data for the past 12 months and it is provided below:

Labour hours Overhead costs $

January 2,500 55,000

February 2,700 59,000

March 3,000 60,000

April 4,200 64,000

May 4,500 67,000

June 5,500 71,000

July 6,500 74,000

August 7,500 75,000

September 7,000 77,000

October 4,500 68,000

November 3,100 62,000

December 6,500 73,000

57,500 805,000

Answer all questions correctly

note: Make sure all working is show fully especially (a)

A. Use the Least-Squares (Regression) method to calculate the:

i. variable overhead cost per labour hour [20 marks]

ii. total fixed overhead cost [4 marks]

B. State the cost function [1 mark]

C. What would be the overhead cost in a month in which 4,950 labour hours were worked using:

i. The high-low cost function and [2.5 marks]

ii. The regression cost function