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DATA INPUT
Material-Handling
Month Units of Activity Department Costs
January 1,800 11,700$
February 1,600 11,300
March 1,300 11,250
April 1,000 10,200
May 2,200 11,100
June 2,400 12,550
July 2,000 12,000
August 1,800 11,400
September 2,600 12,120
October 1,100 11,050
November 1,200 11,350
December 1,400 11,350
SOLUTION
1. Least- squares regression:
Fixed- and variable-cost components:
2. Least-squares regression equation for department's costs:
3. Cost prediction:
