Question: QUESTION 2 The information below relates to the production data of Phalaborwa Ltd that manufactures a specialized equipment for the mining industry. Production overhead

QUESTION 2 The information below relates to the production data of Phalaborwa Ltd that manufactures a specialized equipment for the mining industry. Production overhead (R) Production volume (units) 2017 154 000 105 2018 170 000 90 2019 215 000 130 2020 223 000 150 Required: a) Use the high-low technique and formulate a cost equation for estimating production overheads in 2021. b) Apply the least squares method of linear regression and formulate a cost equation for estimating production overheads in 2021. The equations below might assist in this task: Y= a +bx1 + b2x2.. Ey = Na +b>x [xy = a[x + b[x2

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