Data for the past 10 months were collected for Davao Doctors, Inc.

to Data for the past 10 months were collected for Davao Doctors, Inc. to
estimate the variable and fixed manufacturing overhead. estimate the variable and fixed manufacturing overhead.
The following data on supplies cost and direct labor hours from The following data on supplies cost and direct labor hours from
January to October are available: January to October are available:

X Y X Y
Direct Labor Direct Labor Supplies
Supplies Cost
Hours Hours Cost

20 50 20 50
40 110 40 110
60 150 60 150
20 70 20 70
30 80 30 80
40 100 40 100
50 150 50 150
10 60 10 60
30 110 30 110
50 120 50 120

Determine the variable cost rate per hour and fixed cost portion Determine the variable cost rate per hour and fixed cost portion
using the: using the:
1. High-Low Method 1. High-Low Method
2. Least Squares Regression Method 2. Least Squares Regression Method

Entrep, Inc. has accumulated the following data for the cost of maintenance Entrep, Inc. has accumulated the following data for the cost of maintenance
on its machinery for the las four months of 2016. on its machinery for the las four months of 2016.

Month Utilities Costs Meals Served Month Utilities Costs Meals Served
September P 26,020 21,000 September P 26,020 21,000
October P 24,600 18,500 October P 24,600 18,500
November P 22,300 15,000 November P 22,300 15,000
December P 25,100 19,000 December P 25,100 19,000

Questions: Questions:
1. Assuming Entrep, Inc. uses high-low method of analysis, the fixed cost 1. Assuming Entrep, Inc. uses high-low method of analysis, the fixed cost
of maintenance would be: of maintenance would be:

2. If machine hours are budgeted to be 20,000 hours during January, 2017, 2. If machine hours are budgeted to be 20,000 hours during January, 2017,
the budgeted total maintenance cost would be: the budgeted total maintenance cost would be: