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Using the high-low method, determine the cost function for each cost?

Using the high-low method, determine the cost function for each cost?

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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Using the high-low method, determine the cost function for each cost? 

Grostein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2020. The following cost and other data were gathered for 2019: Maintenance Мachine Health Number of Shipping Costs Units Month Costs Hours Insurance Employees Shipped January February $4,500 165 $8,600 68 $25,776 7,160 $4,452 120 $8,600 75 $29,664 8,240 March $4,600 230 $8,600 92 $28,674 7,965 April Мay $4,850 318 $8,600 105 $23,058 6,405 $5,166 460 $8,600 89 $21,294 5,915 June $4,760 280 $8,600 87 $33,282 9,245 July $4,910 340 $8,600 93 $31,428 8,730 August $4,960 360 $8,600 88 $30,294 8,415 September $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 $34,596 9,610
Transcribed Image Text:Grostein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2020. The following cost and other data were gathered for 2019: Maintenance Мachine Health Number of Shipping Costs Units Month Costs Hours Insurance Employees Shipped January February $4,500 165 $8,600 68 $25,776 7,160 $4,452 120 $8,600 75 $29,664 8,240 March $4,600 230 $8,600 92 $28,674 7,965 April Мay $4,850 318 $8,600 105 $23,058 6,405 $5,166 460 $8,600 89 $21,294 5,915 June $4,760 280 $8,600 87 $33,282 9,245 July $4,910 340 $8,600 93 $31,428 8,730 August $4,960 360 $8,600 88 $30,294 8,415 September $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 $34,596 9,610
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