The facility manager of Tovar Corporation asked the systems analyst for information to help in forecasting handling costs.The following printout was generated using the least squares regression method.

Fixed cost $2,550

Variable cost per unit $ 1.85

Activity variable units of production volume

a.Using the information from the print out, develop a cost tunction that can be used to estumate handing costs at different voluine levels b. Estimate handling costs if expected procluction for next month is 20,000 units.

Question

The facility manager of Tovar Corporation asked the systems analyst for information to help in forecasting handling costs.The following printout was generated using the least squares regression method.

Fixed cost	$2,550
Variable cost per unit	$ 1.85
Activity variable	units of production volume

a.Using the information from the print out, develop a cost tunction that can be used to estumate handing costs at different voluine levels b. Estimate handling costs if expected procluction for next month is 20,000 units.

Quizplus · Accepted Answer

The Answer of The facility manager of Tovar Corporation asked the systems analyst for information to help in forecasting handling costs.The following printout was generated using the least squares regression method.

Fixed cost	$2,550
Variable cost per unit	$ 1.85
Activity variable	units of production volume

a.Using the information from the print out, develop a cost tunction that can be used to estumate handing costs at different voluine levels b. Estimate handling costs if expected procluction for next month is 20,000 units.

The Facility Manager of Tovar Corporation Asked the Systems Analyst