As Part of His Job as Cost Analyst,Max Thompson Collected

question 128

Essay

As part of his job as cost analyst,Max Thompson collected the following information concerning the operations of the Machining Department:
$$\begin{array} { l c c } \text { Observation } & \text { Machine-hours } & \text { Total Operating Costs } \\\text { January } & 4000 & \$ 45000 \\\text { February } & 4600 & 49500 \\\text { March } & 3800 & 45750 \\\text { April } & 4400 & 48000 \\\text { May } & 4500 & 49800\end{array}$$
Required:
a.Use the high-low method to determine the estimating cost function with machine-hours as the cost driver.
b.If June's estimated machine-hours total 4200,what are the total estimated costs of the Machining Department?
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