Usonic, Inc., has collected the following information on its cost of electricity: Required a. Prepare a scattergraph

Question:

Usonic, Inc., has collected the following information on its cost of electricity:

Machine Total Electricity Costs Hours $280 $290 $265 $200 $248 $170 $180 $240 $260 $150 $215 $100 January February March


Required

a. Prepare a scattergraph of Usonic's electricity costs for the year. Plot the total electricity cost on the y-axis. Draw a line that you think best represents the electricity cost function. Be sure that the line runs through at least one of the data points.

b. What is the equation of the line you drew in part (a)?

c. What is the expected electricity cost when 425 machine hours are used?

d. Why does your answer to part (c) differ from the actual cost for the month of April, when 425 machine hours were used?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

Question Posted: