Please help me solve all four parts, thanks!1. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the company’s material-handling department costs. Note: Round the Variable-cost component to 2 decimal places and the Fixed-cost component to the nearest whole dollar amount.2. Complete the least-squares regression equation for the department’s costs. Note: Round variable cost per unit to 2 decimal places and other answer to the nearest whole dollar amount.3. Predict the firm’s material-handling department’s costs for a month when 2,300 units of activity are recorded. Note: Round variable cost per unit to 2 decimal places and final answer to the nearest whole dollar amount.4. Which cost method do you recommend?-The high-low method.-The least squares regression method.-The visual fit method.
Required information
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controller,Mathew Knight,has recently completed a cost study of the firm's material-handling department.Knight used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock.Knight compiled the following data
Units of Activity (hundreds of pounds of Material- equipment loaded Handling or unloaded) Department Costs 1,900 $11,800 1,700 11,400 1,400 11,300 1,100 10,300 2,300 11,200 2,500 12,700 2,100 12,100 1,900 11,500 2,700 12,240 1,200 11,100 1,300 11,450 1,500 11,450
Month January February March April May June July August September October November December
Required:
1.Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression.Estimate the variable-and fixed-cost components in the company's material-handling department costs. Note:Round the Variable-cost component to 2 decimal places and the Fixed-cost component to the nearest whole dollar amount.
Fixed-cost component Variable-cost component