The Ponder Manufacturing Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:
Cost of Electricity Direct Labor-
Month (Y) Hours (X)
January $13,000 1,500
April $15,000 1,700
July $17,000 2,000
October $14,500 1,600
What would be the best equation using the high-low method?
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Please see the response to your posting as below:
Highest direct labor hours = 2000 in month of July and corresponding monthly cost of electricity ...
Solution shows the best equation using the high-low method