Question: 1. Atlanta, inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's
1. Atlanta, inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being avallable for the first six months of the year: Required: Using the high-low method a) Calculate the variable utilities cost per machine hour: b) Calculate the fixed utilities cost per month: c) Predict the utilities cost associated with 980 machine hours. 2. The KILLIP Corporation used regression analysis to prediet the annual cost of indirect materials. The results were as follows: What is the linear cost function? 3. MORELLI-NORRIS's Cola was to manufacture 1,000 cases of cola next week. The accountant provided the following analysis of total manufacturing costs. r2=0.82 What is the predicted cost of producing the 1,000 cases of cola (predicted cost)
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