Question
The following data has-been provided by wangan Ltd a company that prepares banquets and parties for both individuals and business function for the year ended
The following data has-been provided by wangan Ltd a company that prepares banquets and parties for both individuals and business function for the year ended 31/12/2014,
Month labour overhead cost
January 2500 55000
February 2700 59000
March 3000 60000
April 4200 64000
May 4500 67000
June 5500 71000
July 6000 74000
August 7500 77000
September 4500 68000
October 3100 62000
November 6500 73000
December 7000 75000
Required
A) estimate a cost estimation using.
I) the high-low method.
Ii) the least regression analysis method.
B) explain the limitations of high low method.
C)explain the assumptions underlying the least squares regression method.
D) compute the coefficient of determination of interpret.
Step by Step Solution
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Step: 1
Wangan Ltd Cost Estimation Banquet and Party Labor Overhead A Cost Estimation Methods I HighLow Method 1 Identify the highest and lowest labor overhead costs Highest December 7000 Lowest January 2500 ...
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
