Zawetere Limited, in Siteki is a manufacturing company and is in the process of preparing its...

  

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Zawetere Limited, in Siteki is a manufacturing company and is in the process of preparing its budget for the upcoming production period. The following data relate to the company for the year ended 30 November 2021. Year December 2021 January 2021 February 2021 March 2021 2021 2021 2021 2021 2021 2021 2021 Month Details Annual(Total) Monthly (Average) April May June Ady August September October November Machine Hours Elecity Expense 51.0 45.0 51.0 58.5 630 45.0 39.0 39.0 465 52.5 64.5 72.0 960 930 930 885. 750 795 750 750 705 The total anual and monthly average expenditure for the year ended 30 November 2021 were as Machine hours 6:30 000 52 500 870 120 Electricity Expense (1) 10, 260,000 855,000 Required: (a) Using the high low method estimate the cost formula for electricity expenses (Mark) (b) Using the scatter graph method, prepare a scatter graph using the data given above. Fit a regression line to your plotted points by visual inspection (Use a graph paper for question hand c) (4 Mark Page 3 of 7 (c) Using your scatter graph, estimate the approximate variable cost per approximate fixed cost per month. (4) Using the least squares regression method, estimate a cost formula for electricity (Mark) expenses Mark (e) Compute the coefficient of determination and interpret its significance in management accounting (4 Mark Zawetere Limited, in Siteki is a manufacturing company and is in the process of preparing its budget for the upcoming production period. The following data relate to the company for the year ended 30 November 2021. Year December 2021 January 2021 February 2021 March 2021 2021 2021 2021 2021 2021 2021 2021 Month Details Annual(Total) Monthly (Average) April May June Ady August September October November Machine Hours Elecity Expense 51.0 45.0 51.0 58.5 630 45.0 39.0 39.0 465 52.5 64.5 72.0 960 930 930 885. 750 795 750 750 705 The total anual and monthly average expenditure for the year ended 30 November 2021 were as Machine hours 6:30 000 52 500 870 120 Electricity Expense (1) 10, 260,000 855,000 Required: (a) Using the high low method estimate the cost formula for electricity expenses (Mark) (b) Using the scatter graph method, prepare a scatter graph using the data given above. Fit a regression line to your plotted points by visual inspection (Use a graph paper for question hand c) (4 Mark Page 3 of 7 (c) Using your scatter graph, estimate the approximate variable cost per approximate fixed cost per month. (4) Using the least squares regression method, estimate a cost formula for electricity (Mark) expenses Mark (e) Compute the coefficient of determination and interpret its significance in management accounting (4 Mark

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