Information regarding processing costs for Holcomb Corporation for the first six months of the year is as follows:
Required:
1) Using the high-low method, determine the "TC = F + VX"
cost formula for processing costs.
2) Estimate the total processing costs if 75 orders are processed during July.
3) What is the one major limitation of the high-low method compared to the use of simple regression?

Question

Information regarding processing costs for Holcomb Corporation for the first six months of the year is as follows:
  Required:
1) Using the high-low method, determine the "TC = F + VX"
cost formula for processing costs.
2) Estimate the total processing costs if 75 orders are processed during July.
3) What is the one major limitation of the high-low method compared to the use of simple regression?

Quizplus · Accepted Answer

The Answer of Information regarding processing costs for Holcomb Corporation for the first six months of the year is as follows:
  Required:
1) Using the high-low method, determine the "TC = F + VX"
cost formula for processing costs.
2) Estimate the total processing costs if 75 orders are processed during July.
3) What is the one major limitation of the high-low method compared to the use of simple regression?

Information Regarding Processing Costs for Holcomb Corporation for the First