Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve it in computer so i can copy and paste directly As part of his job as a cost analyst had Al-Mercolected the following internation

solve it in computer so i can copy and paste directly
image text in transcribed
image text in transcribed
As part of his job as a cost analyst had Al-Mercolected the following internation concerning the operation of the Machining pertan Observations Total Operating costs Machine hours So January 545060 1000 $21,800 February March 1600 FO 113100 April 122000 3400 May 527460 1.500 Required: Al Compute the values of a and in the near cost function (abx) relating total operating cost to machine hours, in the High & Low 3 marks) method 8). What would be the predicted total operating costs for 5.300 hours in June using the cost function estimated in Requirement above? (1 marks) different from the High Lowth C) Khalid Al-Merri also calculated total estimated cost as $32,315 for 5,300 machine hours using regression method and found his result sighty above. Explain the possible reasons of this difference. Also explain which calculation will be more reliable (1 marks) 5 points As part of his job as a cost analyst, Khalid Al-Merri collected the following information concerning the operations of the Machining Department Observations Total Operating costs Machine hours January 545,060 2,000 February 521,800 3.600 March 533,980 800 April $22000 3.400 May $27,460 14500 Required: A). Compute the values of a and in the linear cost function (Ya+b religing total operating cost to machine hours, using the High & Low (3 marks) method B) What would be the predicted total operating costs for 5,300 hours in June using the cost function estimated in Requirement A). above? (1 marks) different from the High-Low method C. Khalid Al-Merri also calculated total estimated cost as $32,315 for 5.300 machine hours using regression method and found his result slightly above. Explain the possible reasons of this difference. Also explain which calculation will be more reliable (1 marks)

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

Debunked An Auditor Reviews The 2020 Election And The Lessons Learned

Authors: Joseph Fried

1st Edition

1645720756, 978-1645720751

More Books

Students also viewed these Accounting questions