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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

Cost estimation using regression analysis. Milky Chocolates has observed the following overhead costs for the past 12 months:

Month Overhead Costs/ Boxes of Output

January............................................... \$11,400 4,500
February............................................ 15,600 11,000
March................................................. 16,800 12,000
April.................................................... 12,000 5,500
May...................................................... 14,100 9,000
June...................................................... 15,600 10,500
July....................................................... 13,200 7,500
August.................................................. 12,300 5,000
September........................................... 15,600 11,500
October................................................ 12,900 6,000
November............................................ 14,400 8,500
December............................................ 15,000 10,000

The results of the regression analysis are:

TC=\$8,781 + (0.63 X Number of Boxes)

a. Plot the data and the regression line.

b. Estimate total monthly costs for a month when 10,200 boxes of chocolate are produced.

Accounting Basics, Accounting

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