Birch Canvas and Tarp Manufactures Canvas Products in a Highly

question 2

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:

Fluency

The ability to express oneself easily and articulately or the smoothness of movement and operation.

Expressiveness

The ability or quality of effectively conveying thoughts, feelings, or emotions through verbal or non-verbal communication.

Convergent Thinking

A cognitive process that involves focusing on finding a single, correct solution to a problem, often through the application of logic and rules.

Divergent Thinking

is a thought process or method used to generate creative ideas by exploring many possible solutions.