The Managers of the Production Department Have Decided to Use

question 117

Essay

The managers of the production department have decided to use the production levels of 2018 and 2019 as examples of the highest and lowest years of operating levels.During 2018 the department used 280,000 litres of chemicals and during 2019 it used 240,000 litres.The department's costs for 2018 were $460,000, but only $400,000 in 2019.Required:
Using the high-low method determine the cost estimating equation for the department if litres of direct material are used as the cost driver?

---

Definitions:

Expertise

A high level of skill or knowledge in a certain domain, acquired through extensive experience or education.

Persuasion

The act of influencing someone's beliefs, attitudes, or behaviors through argument, appeal, or rational discussion.

Vitamin Supplements

Concentrated sources of vitamins that are taken orally to add to the dietary intake of these nutrients.

Anxious-Ambivalent Attachment

A form of insecure attachment where individuals are overly anxious about the stability of their relationships, seeking high levels of intimacy and responsiveness from others.