ACC- Pedro Padilla, president of Padilla Window and Doors CORP,

Pedro Padilla, president of Padilla Window and Doors CORP, present the following information about the cost behavior of the manufacturing assembly costs. He want to know and determine how much of the manufacturing assembly cost are fixed and how much variable. Offer the following data asking for your help.

Month Machine Hours Assembly Costs
May 1,700 $18,000
June 2,600 25,000
July 2,000 15,800
August 2,500 22,800
September 3,500 27,000
October 1,800 19,100
November 2,850 25,250
December 3,600 29,200

Required:
Regular BONO (up to 10 point)
1. Using the High – Low method, determine the:
a. Manufacturing assembly variable cost per unit.
b. Manufacturing assembly fixed cost
c. The resulting cost function
d. If 1950 machine hours are expected for January, which is the total cost using the cost function of requirement c.
2. A Least square regression analysis is required. Determine the:
a. Manufacturing assembly variable cost per unit.
b. Manufacturing assembly fixed cost
c. The resulting cost function
d. If 1950 machine hours are expected for january , which is the total cost using the cost function of requirement c.
3. Determine the goodness of fit
a. Square R