Question - Jamie Johnson auto repair shop maintenance cost mixed and varies most directly with labor hours worked. The following data have been gathers recent operations:
Hours of activities......Maintenance Costs
January 480 4200
February 320 3000
March 400 3600
April 300 5800
May 500 4300
June 310 2960
July 320 3030
August 520 4470
September 490 4260
October 470 4050
November 350 3300
December 340 3160
Total 4800 43200
Instruction
A. Use the High-Low method to estimate a cost formula for maintenance.
B. Use least squares regression to estimate a cost formula for maintenance.
C. Use your answer on (A) to find the total cost of Maintenance for the next three month of the following year is the number of hours used as follows:
January the following year= 420 hours
February the following year=510 hours
March the following year= 360 hours
D. Use your answer on (B) to find the total cost of Maintenance for the next three month of the following year is the number of hours used as follows:
January the following year= 420 hours
February the following year=510 hours
March the following year= 360 hours