Problem 2-21 (Essay): Submit to Dropbox in one Word document together with problem 1-8. Assess decision-making approaches to forecasting results using different techniques. Compare results. Problem 2-21 (Essay) Details Bob Jones owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal with heavy demand during the summer months and yearend holidays and light demand at other times. Bob has gathered the following cost information from the past year:month labor hrs overhead costsJanuary 2500 55000February 2800 59000March 3000 60000April 4200 64000May 4500 67000June 5500 71000July 6500 74000August 7500 77000September 7000 75000October 4500 68000November 3100 62000December 6500 73000Total 57600 805000Bob recently attended a meeting of the local Chamber of Commerce at which he heard an accounting professor discuss regression analysis and its business applications. After the meeting Bob enlisted the professor’s assistance in preparing a regression analysis of the overhead data he collected. This analysis yielded an estimated fixed cost of $48 000 per month and a variable cost of $4 per labor hour. Why do these estimates differ from estimates using the high-low method?
