MA5 Problem: Cost Estimation – High-Low Method – Alex Limited

MA5 Problem: Cost Estimation – High-Low Method – Alex Limited

The following report for Alex Limited details direct labour costs and output levels for the twelvemonths ended December 31, 200X.Units Produced DirectLabour CostsJanuary 21,560 $336,336February 19,710 300,975March 24,300 346,275April 23,190 320,022May 18,690 256,980June 18,460 258,440July 18,420 257,880August 16,120 256,120September 17,950 278,225October 31,040 450,080 November 26,190 390,231December 23,430 325,677Required:1. Estimate the cost function using the high-low method.