QUESTION 2 [Cost Classification and Behaviour] Randburg Ltd has the following information (40 marks) Month Labours hours Total labour cost January 40.80 768.00 February 36.00 744.00 March 40.80 744.00 April 46.80 708.00 May 50.40 600.00 June 38.40 636.00 July 31.20 600.00 August 31.20 600.00 September 37.20 636.00 October 42.00 660.00 November 51.60 696.00 December 57.60 816.00 Estimate the regression equation using a) High-Low method b) Ordinary least squares regression method The following normal equations may be useful y=na+bx xy = bx+bx (5 marks) (20marks) c) Estimate using the equation in (a) the total labour cost when the worker work 100 hours (5 marks) d) Estimate using the equation in (b) the total labour cost when the worker work 100 hours (5 marks) e) In your opinion evaluate the two methods based on your results above, and advice management as to which method would be best to use for estimation purposes. (5 marks)