Birch Canvas and Tarp Manufactures Canvas Products in a Highly

question 11

Essay

Birch Canvas and Tarp manufactures canvas products in a highly automated assembly plant in Edmonton, Alberta.Their automated system is in its first year of operation, and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes.For the first six months of operations the following data were collected:
Required:
a.Compute a cost estimating equation for each independent variable (machine-hours and kilowatt-hours)using the high-low method.
b.For July the company ran the machines for 1,600 hours and used 2,075,000 kilowatt hours of power.The overhead costs totalled $95,000.Which driver was the best predictor for July?

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Definitions:

Social Order

The arrangement of practices and behaviors on which society’s members base their daily lives, aimed at maintaining stability and predictability.

Conflict Theory

A theory that views social and economic institutions as tools of the struggle between groups or classes, used to maintain inequality and the dominance of the ruling class.

Functionalism

A theoretical framework in sociology that emphasizes the interconnectivity and interdependence of societal institutions and their roles in maintaining social order.

Social Cohesion

The extent to which members of a society feel connected and united towards achieving common goals, fostering a sense of belonging and mutual support.