Semi variable cost - richardson comp

Calibri 11 A D Wrap Text General Paste FU- Merge & Center % " Conditional Format as Cell Clipboard Formatting . Table . Styles Font Alignment Number Styles A19 X v A B C D H Case 2 - Semivariable cost W N The following data were collected for the most recent 12 month period by the cost accountant in one of the A Richardson Company's manufacturing plants. 5 Month Electricity Machine Month Electricity Machine 6 cost hours cost hours 7 $1600 July 1570 2750 January 2790 2700 February 1510 2680 August 1530 9 September 2530 10 March 1500 2600 1480 1470 2520 11 April 1450 2500 October 1450 2490 2510 12 May 1460 November 2520 2610 December 1460 13 June 1520 14 Required: 15 Using least square analysis, compute the variable cost rate and the fixed cost for the electricity cost and how 16 well is your model to predict the electricity cost by explaining the R and R square. 17 18 19 20 21 22 23 24 25