Reference no: EM132629084

Johnson Corporation is preparing a flexible budget and desires to separate its electricity expense which is semi-variable and fluctuates with total machine hours, into its fixed and variable components. Information for the first three months of 2013 is as follows:

                        Machine hours         Electricity Expense

January               3, 500              P31, 500

February            2, 000               P20, 000

March               4, 000                 P35, 600

Requirements:

Problem 1: Using the least square method Compute the total manufacturing cost if actual machine hours is 6, 000