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For example, Master Chemicals produces bottles of a cleaning lubricant. The activity levels and the attached costs are shown below: Batch Number of Bottles Cost (S) 1 4,100 66,000 2 3,600 53,000 3 3,200 52,100 2,860 48,230 5 1,950 36,750 6 1,020 33,000 7 580 17,000 Required: On the basis of above data, determine the cost function using the least squares regression method and calculate the total cost at activity levels of 6,000 and 10,000 bottles.

For example, Master Chemicals produces bottles of a cleaning lubricant. The activity levels and the attached costs are shown below: Batch Number of Bottles Cost (S) 1 4,100 66,000 2 3,600 53,000 3 3,200 52,100 2,860 48,230 5 1,950 36,750 6 1,020 33,000 7 580 17,000 Required: On the basis of above data, determine the cost function using the least squares regression method and calculate the total cost at activity levels of 6,000 and 10,000 bottles.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For example, Master Chemicals produces bottles of a cleaning lubricant. The activity levels and the attached costs are shown below: Batch Number of Bottles Cost (S) 1 4,100 66,000 2 3,600 53,000 3 3,200 52,100 4 2,860 48,230 5 1,950 36,750 6 1,020 33,000 7 580 17,000 Required: On the basis of above data, determine the cost function using the least squares regression method and calculate the total cost at activity levels of 6,000 and 10,000 bottles.
Transcribed Image Text:For example, Master Chemicals produces bottles of a cleaning lubricant. The activity levels and the attached costs are shown below: Batch Number of Bottles Cost (S) 1 4,100 66,000 2 3,600 53,000 3 3,200 52,100 4 2,860 48,230 5 1,950 36,750 6 1,020 33,000 7 580 17,000 Required: On the basis of above data, determine the cost function using the least squares regression method and calculate the total cost at activity levels of 6,000 and 10,000 bottles.
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