Question

Can you explain to me how to do MAPE in Excel with this data?

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Cost Estimation; High-Low Method; MAPE?Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance expense and machine hours:

Month	Maintenance Expense	Machine Hours
?1	$2,600	1,690
?2	?2,760	1,770
?3	?2,910	1,850
?4	?3,020	1,870
?5	?3,100	1,900
?6	?3,070	1,880
?7	?3,010	1,860
?8	?2,850	1,840
?9	?2,620	1,700
10	?2,220	1,100
11	?2,230	1,300
12	?2,450	1,590

Required

1. What is the cost equation for maintenance cost using the high-low method?

2. Calculate the mean absolute percentage error (MAPE)

Answer 1

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