Reference no: EM132853021

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

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

2. Using the same high-low points method, the fixed cost of operations is

3. What is the cost function of the costs of operation?

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?

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

6. Using the least square method, the fixed portion of the cost is

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?