Behavior of manufacturing-selling and administrative costs

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Recent monthly data on sales units, manufacturing costs, selling costs, and administrative costs for Alex Company is provided below. Company manufactures and sells a product called “GO”.

Sales Units          Manufacturing Costs        Selling Costs        Administrative Costs

267,300                      $1,215,614                     $306,370                      $196,020

287,100                       1,276,876                       319,197                        193,916

297,000                       1,345,945                       326,598                        197,753

306,900                       1,289,789                       324,057                        197,134

316,800                       1,390,990                       359,652                        200,723

336,600                       1,505,404                       372,233                        204,188

356,400                       1,467,266                       367,052                        202,455

366,300                       1,497,296                       354,225                        205,054

376,200                       1,547,446                       375,439                        206,539

396,000                       1,602,401                       369,766                        207,776

346,500                       1,449,248                       385,554                        205,425

326,700                       1,352,551                       312,044                        200,178

1. Using High-Low Method of cost analysis, determine the behavior of manufacturing, selling, and administrative costs.

2. Using Regression Method of cost analysis, determine the behavior of manufacturing, selling, and administrative costs.

Reference no: EM132175931

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