. The maintenance cost incurred and the actual machine hours worked during the

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The maintenance cost incurred and the actual machine hours worked during the

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The maintenance cost incurred and the actual machine hours worked during the months of January, February, March, and April 2003 were as follows:
Month
Machine hours in
Production departments
Maintenance
department’s Costs

Sh.

January
800
350

February
1,200
350

March
400
150

April
1,600
550

Required:
Determine the cost estimation function using:High-low method.(2 marks)
Regression analysis(2marks)
Using the regression function estimate:
The maintenance costs that would have been incurred if the machine hours were expected to be 900 in the month of May 2003.(1 mark)

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