CoursHeroTranscribedText: $11 BM2206 Name Section Date I. PROBLEM-SOLVING (60 points) Solve the following items. Write your answers and complete solutions on a separate journal sheet. 1. La Mia's Casas builds replicas of residences of famous and infamous people. The company is highly automated, and the new accountant-owner has decided to use machine hours to predict maintenance costs. The following data are available from the company's most recent eight (8) months of operations (4 items it 5 points): 8,000 | 5,500 P1.020 i P1,2oo Machine Hours | 4,000 | 7,000 3,500 i 6,000 | 3000 Maintenance Costs i P1,470 i P1200 P1 ,680 [ P1.100 i P880 9,000 P1 ,960 a. Using the highlow method. calculate the change in cost compared to the change in activity. b. Determine the relationship of cost change to activity change to nd the variable cost element. c. Compute the total variable cost at both levels of activity. d. Determine the xed cost. CRITERIA POINTS Complete solution with correct answer 5 Last major stepts) of the solution is incorrect. 3 First major stepts) of the solution is correct. 1 2. Uptown Mining has compiled the following data to analyze utility costs: Month January February I March April May June July August ":33? 200 325 i 400 410 525 680 820 900 Utility Cost P300 P440 | P480 P490 | P620 P790 P840 | P900 Use the least squares method to develop a formula for budgeting utility cost. a. Compute the x. y, xy, and x2 in table format. (36 points} b. Determine the mean of x and y. (4 points) c. Compute the variable (b) cost and fixed (a) cost. (20 points) Table Com-lete values and correct totals 36 noints 36 1? Complete solution and correct answer (2 points) 2 y I Complete solution and correct answer (2 points) 2 b Com-lete solution and correct answer 10 ooints 10 a Complete solution and correct answer (10 points} 10 TOTAL 60 02 Quiz 1 'Property of ST! Page 1 of 1