DoKnow Co. like to estimate the variable and fixed cost components of its maintenance cost and has compiled the following data for the last 6 months of operation: January February March April May June Answer the following. Show solutions. All answers in two decimal places. 1. Compute for the summation of XY. 2. Compute for the summation of X squared. 3. Using Hi-Lo method, what is the estimated fixed cost per month for maintenance 4. Using the least square method, what is the estimated variable cost per labor hour. 5. If the company will use 230 labor hours in July, what would be the estimated variable cost per labor hour for maintenance using Hi-Lo method. 6. What is the estimated fixed cost per month for maintenance if least square method is used? 4. 5. 6. Labor hours Maintenance cost P6,170 5,530 5,230 5,960 7. If the company will use 230 hours labor hours in July, what would be the total predicted cost of maintenance? 8. How much is the total variable cost of maintenance if least square method is used assuming 150 labor hours is consumed in July? 9. What is the predicted cost of Maintenance for the nonth of July assuming 150 labor hours are consumed if least square method is used. Write your final answers below. 1. 2. 3. 6809 190 130 110 180 190 110 7. 8. 6,230 5,320 9.
DoKnow Co. like to estimate the variable and fixed cost components of its maintenance cost and has compiled the following data for the last 6 months of operation: January February March April May June Answer the following. Show solutions. All answers in two decimal places. 1. Compute for the summation of XY. 2. Compute for the summation of X squared. 3. Using Hi-Lo method, what is the estimated fixed cost per month for maintenance 4. Using the least square method, what is the estimated variable cost per labor hour. 5. If the company will use 230 labor hours in July, what would be the estimated variable cost per labor hour for maintenance using Hi-Lo method. 6. What is the estimated fixed cost per month for maintenance if least square method is used? 4. 5. 6. Labor hours Maintenance cost P6,170 5,530 5,230 5,960 7. If the company will use 230 hours labor hours in July, what would be the total predicted cost of maintenance? 8. How much is the total variable cost of maintenance if least square method is used assuming 150 labor hours is consumed in July? 9. What is the predicted cost of Maintenance for the nonth of July assuming 150 labor hours are consumed if least square method is used. Write your final answers below. 1. 2. 3. 6809 190 130 110 180 190 110 7. 8. 6,230 5,320 9.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer with solution pls
Transcribed Image Text:DoKnow Co. like to estimate the variable and fixed cost components of its
maintenance cost and has compiled the following data for the last 6 months of
operation:
January
February
March
April
May
June
Labor hours Maintenance cost
P6,170
5,530
5,230
5,960
6,230
5,320
190
130
110
180
190
110
Answer the following. Show solutions. All answers in two decimal places.
1. Compute for the summation of XY.
2. Compute for the summation of X squared.
3. Using Hi-Lo method, what is the estimated fixed cost per month for maintenance
4. Using the least square method, what is the estimated variable cost per labor hour.
5. If the company will use 230 labor hours in July, what would be the estimated
variable cost per labor hour for maintenance using Hi-Lo method.
6. What is the estimated fixed cost per month for maintenance if least square
method is used?
7. If the company will use 230 hours labor hours in July, what would be the total
predicted cost of maintenance?
8. How much is the total variable cost of maintenance if least square method is used
assuming 150 labor hours is consumed in July?
9. What is the predicted cost of Maintenance for the nonth of July assuming 150
labor hours are consumed if least square method is used.
a
Write your final answers below.
1.
2.
3.
4.
5.
6.
7.
8.
9.
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