2. WRKSHT 2 – High/Low Method Computations a. Determine the Cost Estimation Equations assuming i. Independent Variable...

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2. WRKSHT 2 – High/Low Method Computations
a. Determine the Cost Estimation Equations assuming
i. Independent Variable = “Thousands of Units Produced”
ii. Independent Variable = “Number of Paid Days”
b. Determine the Cost Estimates for the cost equations above.(SEE BELOW for “Information for Computing Cost Estimates” on nextpage)
3. WRKSHT 3 – Simple Regression - Indep. Variable =“Thousands of Units Produced”
a. Complete and format the regression results, then
b. Document the cost estimation equation, and c. Determine thecost estimate using the equation determined in b.
(SEE BELOW for “Information for Computing Cost Estimates” onnext page)
4. WRKSHT 4 – Simple Regression - Indep. Variable =“Number of Paid Days”
a. Complete and format the regression results, then
b. Document the cost estimation equation, and
c. Determine the cost estimate using the equation determined inb.
(SEE BELOW for “Information for Computing Cost Estimates” onnext page)
5. WRKSHT 5 – Multiple Regression Analysis
a. Complete and format the regression results, then
b. Document the cost estimation equation
c. Determine the cost estimate using the equation determined(SEE BELOW for “Information for Computing Cost Estimates”)
INFORMATION FOR COMPUTING COST ESTIMATES: Assume thatAngora Wraps for next January estimates that it will produce 140thousand Units of Product and expect 23 Paid Days. To Do: Calculatethe 5 cost estimates using the 5 cost estimation equations you’vedeveloped from the High/Low (2), Simple (2), and MultipleRegression (1) worksheets. Document each of these cost estimates oneach of your applicable worksheets.
Month Thousands of Units Produced Number of Paid Days Direct Labor Cost
January 98 20 $14,162
February 76 20 $12,994
March 75 21 $15,184
April 80 22 $15,038
May 85 22 $15,768
June 102 21 $15,330
July 52 19 $13,724
August 136 21 $14,162
September 138 22 $15,475
October 132 23 $15,475
November 86 18 $12,972
December 56 21 $14,074

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A B C D E F G H 2 3 4 In highlow method the cost for highest and lowest level of activity is used to predict cost at a particular activity level 5 a i 6 Calculation of cost using HiLow Method assuming Thousands of units produced as independent variable 7 Thousands of units produced DL Cost 8 Min 56 14074 9 Max 138 15475 10 11 Variable cost change in costchange in Units 1709 E9E8D9D8 12 Fixed Cost 1311722 E8D8E11 13 14 Thus the cost equation will be 15 Direct Labor Cost 1311722 1709Thousands of units produced 16 17 a ii 18 Calculation of cost using HiLow Method assuming See Answer

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2. WRKSHT 2 – High/Low Method Computationsa. Determine the Cost Estimation Equations assumingi. Independent Variable = “Thousands of Units Produced”ii. Independent Variable = “Number of Paid Days”b. Determine the Cost Estimates for the cost equations above.(SEE BELOW for “Information for Computing Cost Estimates” on nextpage)3. WRKSHT 3 – Simple Regression - Indep. Variable =“Thousands of Units Produced”a. Complete and format the regression results, thenb. Document the cost estimation equation, and c. Determine thecost estimate using the equation determined in b.(SEE BELOW for “Information for Computing Cost Estimates” onnext page)4. WRKSHT 4 – Simple Regression - Indep. Variable =“Number of Paid Days”a. Complete and format the regression results, thenb. Document the cost estimation equation, andc. Determine the cost estimate using the equation determined inb.(SEE BELOW for “Information for Computing Cost Estimates” onnext page)5. WRKSHT 5 – Multiple Regression Analysisa. Complete and format the regression results, thenb. Document the cost estimation equationc. Determine the cost estimate using the equation determined(SEE BELOW for “Information for Computing Cost Estimates”)INFORMATION FOR COMPUTING COST ESTIMATES: Assume thatAngora Wraps for next January estimates that it will produce 140thousand Units of Product and expect 23 Paid Days. To Do: Calculatethe 5 cost estimates using the 5 cost estimation equations you’vedeveloped from the High/Low (2), Simple (2), and MultipleRegression (1) worksheets. Document each of these cost estimates oneach of your applicable worksheets.MonthThousands of Units ProducedNumber of Paid DaysDirect Labor CostJanuary9820$14,162February7620$12,994March7521$15,184April8022$15,038May8522$15,768June10221$15,330July5219$13,724August13621$14,162September13822$15,475October13223$15,475November8618$12,972December5621$14,074

Month	Thousands of Units Produced	Number of Paid Days	Direct Labor Cost
January	98	20	$14,162
February	76	20	$12,994
March	75	21	$15,184
April	80	22	$15,038
May	85	22	$15,768
June	102	21	$15,330
July	52	19	$13,724
August	136	21	$14,162
September	138	22	$15,475
October	132	23	$15,475
November	86	18	$12,972
December	56	21	$14,074