Referencing Styles : Not Selected 1. Using the high-low method, calculate; a. The variable cost per unit of cost driver, b. The fixed cost, and c. Write the cost equation based on high–low method. (4 marks) 2. Using the equations estimated in Part 1 (c) predict the Delivery Department’s costs for a month when loads totalling 4,500 kilograms are moved. (1 mark) 3. Construct an Excel® spreadsheet which uses least squares regression analysis to estimate the variable and fixed components for the Del … View More 1. Using the high-low method, calculate; a. The variable cost per unit of cost driver, b. The fixed cost, and c. Write the cost equation based on high–low method. (4 marks) 2. Using the equations estimated in Part 1 (c) predict the Delivery Department’s costs for a month when loads totalling 4,500 kilograms are moved. (1 mark) 3. Construct an Excel® spreadsheet which uses least squares regression analysis to estimate the variable and fixed components for the Delivery Department costs. Determine a. The variable cost per unit of cost driver, b. The fixed cost, and c. Write the cost equation based on the least squares regression equation for the Department’s costs. (4 marks) 4. Using the equation from Part 3 (c), predict the Delivery Department’s costs for a month when loads totalling 4,500 kilograms are moved. (2 marks) 5. What is the value of R2 and what does the R2 value mean? (2 marks) 6. Why do the cost predictions estimated using the high–low and regression methods differ? Which method do you recommend? Justify your answer. (2 marks) Read Less

## (Done Paper) Referencing Styles : Not Selected 1. Using the high-low method, calculate; a. The variable cost per unit of cost driver, b. The fixed cost, and c.

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