QUESTION THREE
Hightex Engineering Company Limited wishes to set flexible budgets for each of its operating departments. A separate maintenance department performs all routine and major repair works on the company's equipment and facilities. The company has determined that maintenance department performs all routine and major repair works on the company's equipment and facilities. The company has determined that maintenance cost is primarily a function of machine hours worked in the various production departments.
The maintenance cost incurred and the actual machine hours worked during the months of January, February, March and April were as follows:
January : Machine Hours in production depatment :
Maintenance departments costs : usd
February : Machine Hours in production depatment :
Maintenance departments costs : usd
March Machine Hours in production depatment :
Maintenance departments costs : usd
April : Machine Hours in production depatment :
Maintenance departments costs : usd
Required: Determine the cost estimation function using:
Highlow method marks
Regression analysis marks
