Birch Canvas and Tarp Manufactures Canvas Products in a Highly

question 18

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 predictor 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?

---

Definitions:

Politicians

Individuals involved in governing or making policy, typically within an institutional governmental context.

Websites

Collections of web pages and related content that are identified by a common domain name and published on at least one web server.

Political Candidates

Individuals who are running for elected office in governmental bodies, from local councils to national presidencies.

Political Opinions

Individual beliefs or attitudes about governmental policies, programs, or leaders.