QUESTION 2 The information below relates to the production data of Phalaborwa Ltd that manufactures a...
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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 +b₁x1 + b2x2.. Ey = Na +b>x [xy = a[x + b[x2 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 +b₁x1 + b2x2.. Ey = Na +b>x [xy = a[x + b[x2
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a To formulate the cost equation with the help of the high low method we can use Excel for calculati... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
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