ASSIGNMENT ON ACC 415-MANAGEMENT ACCOUNTING 1 FOR PART TIME

ASSIGNMENT 2

Ajikaowo Engineering Limited manufactures gas cookers to be used both industrially and domestically.

The following mixed cost and machine hour were incurred in 2018.

Month	Supervision Costs (N)	Machine Hours
January 2018	98,000	39,000
February 2018	80,000	33,000
March 2018	100,000	41,000
April 2018	122,000	48,000
May 2018	108,000	46,000
June 2018	81,000	31,000
July 2018	90,000	37,000
August 2018	88,000	35,000
September 2018	90,000	42,000
October 2018	91,000	42,000
November 2018	121,000	51,000
December 2018	110,000	47,000

Required:

(a) Using both the “High and Low Points” and “the Least Square Regression Analysis Technique”, determine the variable cost per hour and total fixed cost included in the supervision cost.

(b) Based on your calculation in (a) above, estimate the supervision cost for January 2019 assuming the company expects that 38,000 machine hours will be involved for that month.

ASSIGNMENT 3

(a) The major cost estimation or analysis techniques are the following:

i. Account Analysis

ii. Scatter Graph

iii. High and Low Points or Range Method

iv. Least Square Regression Analysis

You are required to explain your understanding of (iii) and (iv) including their strengthens and weakness.

(b) State three similarities and difference between High and Low Points and Least
Square Regression Analysis

Note:

Give it to your class Governor(s) and to be submitted on or before 12noon on Saturday 25th May, 2019.

TODAY`S LECTURES ON LEAST SQUARE REGRESSION ANALYSIS METHOD

                                                         IT IS WELL!

                                                  Patriot Odunaro B.J (08038454008)

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