Reference no: EM132694140

As part of a cost study, the cost accountant of Shinly Corporation has recorded the cost of operations at seven different levels of materials usage. The records show the following:

Kilos of materials         Costs of operation

80                                  P800

60                                     P480

20                                    P320

120                                P1, 200

140                                  P1, 280

40                                    P480

100                               P1, 040

Problem 1: Using the high-low points method, the variable cost of operations per kilo of materials used is _______

Problem 2:  Using the same high-low points method, the fixed cost of operations is _______

Problem 3: What is the cost function of the Operation cost?

Problem 4:  Assuming 150 kilos of material usage is expected to occur next month, how much will be the estimated operations cost based on the cost function generated from high-low method?

Problem 5: Using the least squares method, the average rate of variability per kilo of materials used is

Problem 6: Using the least square method, the fixed portion of the cost is _________

Problem 7: Assuming 98 kilos of material usage is expected to occur next month, how much will be the estimated operations cost based on the cost function generated from least square method?