Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage

  1. Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows.

Perched

No of welding job assignments

Total cost sh ‘000’

Sept 2008

   280

700

Oct   2008

   800

860

Nov 2008

1,240

110

Dec   2008

1,000

960

Jan   2009

   600

720

Feb   2009

   920

910

Mar 2009

   860

880

Apr   2009

1,200

260

REQUIRED:

Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using

  1. High-low method
  2. Simple linear regression method.                               (6 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To estimate the total cost of the welding shop and compute the cost of undertaking 1256 assignments we can use the highlow method and simple linear re... 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_2

Step: 3

blur-text-image_3

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

Principles of Auditing and Other Assurance Services

Authors: Ray Whittington, Kurt Pany

19th edition

978-0077804770, 78025613, 77804775, 978-0078025617

More Books

Students also viewed these Accounting questions