2. WRKSHT 2 High/Low Method Computations

a. Determine the Cost Estimation Equations assuming

i. Independent Variable = Thousands of Units Produced

ii. Independent Variable = Number of Paid Days

b. Determine the Cost Estimates for the cost equations above. (SEE BELOW for Information for Computing Cost Estimates on next page)

3. WRKSHT 3 Simple Regression - Indep. Variable = Thousands of Units Produced

a. Complete and format the regression results, then

b. Document the cost estimation equation, and c. Determine the cost estimate using the equation determined in b.

(SEE BELOW for Information for Computing Cost Estimates on next page)

4. WRKSHT 4 Simple Regression - Indep. Variable = Number of Paid Days

a. Complete and format the regression results, then

b. Document the cost estimation equation, and

c. Determine the cost estimate using the equation determined in b.

(SEE BELOW for Information for Computing Cost Estimates on next page)

5. WRKSHT 5 Multiple Regression Analysis

a. Complete and format the regression results, then

b. Document the cost estimation equation

c. Determine the cost estimate using the equation determined (SEE BELOW for Information for Computing Cost Estimates)

INFORMATION FOR COMPUTING COST ESTIMATES: Assume that Angora Wraps for next January estimates that it will produce 140 thousand Units of Product and expect 23 Paid Days. To Do: Calculate the 5 cost estimates using the 5 cost estimation equations youve developed from the High/Low (2), Simple (2), and Multiple Regression (1) worksheets. Document each of these cost estimates on each of your applicable worksheets.

Month	Thousands of Units Produced	Number of Paid Days	Direct Labor Cost
January	98	20	$14,162
February	76	20	$12,994
March	75	21	$15,184
April	80	22	$15,038
May	85	22	$15,768
June	102	21	$15,330
July	52	19	$13,724
August	136	21	$14,162
September	138	22	$15,475
October	132	23	$15,475
November	86	18	$12,972
December	56	21	$14,074