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2. Estimating the Cost Functions-Budgeted and Actual Use (in Excel) the high-low method to determine the variable cost rate/FTE student, and the total fixed costs based on the quarterly expense budget for 2020-21 (Exhibit 1). Be sure to recognize the time period covered by your estimates (i.e., variable cost/FTE/ for what period? And total fixed costs for what period?) Now repeat the process to estimate the actual cost function using the actual results for the first two quarters of 2020-21 shown in Exhibit 2. Note the limitations of using this method with so few observations. However, results for the first two quarters are the only information available to us regarding the center's actual cost performance. The rosults of these analyses can be used to estimate the budgeted cost function of the SDC. The cost function will enable you to estimate the costs at any level of activity (in the case of SDC, the number of children enrolled in the center). Show both analyses in a separate spreadsheet. Present both cost functions in the standard form TC=FC+VC/ unit (X), where: TC=TotalCostFC=FixedCostVClunit=VariableCostperFTEX=NumberofFTEs Both cost functions should be based on total expenses; you should not do a line-by-line analysis. 3. Variance Analysis-Fixed and Variable Costs You already completed a variance analysis comparing the individual income statement line iterms in step 1. However, it can also be helpful to compare the performance for fixed and variable cost components. This is relatively easy to do now that you have estimated the actual and budgeted cost functions in the previous step. Complete (in Excel) the table below to assist in analyzing the results for the first six months of 2020-21. The six-month actual and budgeted cost functions can be calculated from the cost functions that you developed in step 2. Complete (in Excel) the table below to assist in analyzing the results for the first six months of 202021. The six-month actual and budgeted cost functions can be calculated from the cost functions that you developed in step 2. 3 How is SDC doing for the first 6 months of the year in terms of controlling its total costs? At controlling its fixed costs? Its variable costs/FTE