This paper circulates around the core theme of If the cost function was calculated using simple regression analysis, in one sentence explain what the primary difference would be between using simple regression analysis and the high-low method to calculate the cost equation. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
REMInc. collected the following data to determine their overhead cost function:
Overhead Costs Direct Labor Hours
$20,000 1,250
$28,500 1,800
$26,750 1,400
$25,900 1,375
$30,200 2,100
1. Calculate the cost function using the high-low method.
2. If direct labor hours in the coming period are expected to be
1,600, what is the estimated overhead cost using the cost function
calculated in Part 1?
3. What would the total fixed overhead be estimated at if the
expected number of direct labor hours for the coming period was 1,750?
4. If the cost function was calculated using simple regression
analysis, in one sentence explain what the primary difference would be
between using simple regression analysis and the high-low method to
calculate the cost equation.
