Rick Everet, francial analyst at LMN Corporation, is amining the behavior of quarturly utliy costs for...
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Rick Everet, francial analyst at LMN Corporation, is amining the behavior of quarturly utliy costs for budgeling purposes Everett colects the folowing data on machine-houns worked and utitty conts for the past B qarten I (Cick the lcon so view the data) Read the pkem Requirement 1. Estimate the cost funcdion for the quarterly data uning the high low method (Complete al annwer boves ) (Aer you ht continun, the screun may taka you below the begening of the next step so, soul tack up to the tap of the step) Requirement 2. Plot and comment on the estimated cost tunction Pahn.Jes for the etated cent hunctien using the high tow method The data pointa for the quartars have altady been entered in for you (Enturge the graph and une he ine tutton diaplayed belon dra te graph) Rik Evert fruncial analyst at LMN Corporation. is mamining the behavior of quarterty sny cesta for budgeing purposes Evereti colecth the follwing data on machine haun worked and uity contn for he part quarters (Cick the icon to view the data) Read the reiement Commeet on the estimated cont function by choosing the correct statement to go with nach of the evakuation crtoria hted below. Economic plausibilty O The cost luncion shows a positive economically plauntle relaorship between machine houn and uity costs. There is a dear cut retatonshp of higher machine urs and uy c O The cost tanction shows a negeve economically plaustle relationship between machine hour end ity costs. Thare is nota duar ct latenship of higher machine hou and thy cont Goodnuss of O The high V ine sppears to the data wall. The vertical dierences between the artuat and predited conta appsar to be quite sa O The highow line appearsto not r the dats wel The verical iferences between the actual and prediced cn ppea ta be quit large Sepe of high ow line O The slope of the ine appears to be reasonably steep indicating hat n average, utlty costs in a quaite vary with machine hours ned O The slope of te he appears to be unmasonatly eap indicating that on averge uity costs ina quarter de not vary wth machine hours ned Rick Evereft, financial analyst at LMN Corporation, is esamining the behavior of quarterly utity costs for budgeting purposes Everett collects the following data on machine-hours worked and ulity costs for the (Click the icon to view the data) Read the requinmento O The cost function shows a negadive economically plausible relationship between machine hours and utlity costs There is not a dear-cut relationship of higher machine houn and utlity costs Goodness of fit O The high-low line appears to "Tr the data well. The vertical diferances botween the acual and predicted costs appear to be quite small O The high-low Iine appears to not "r the data well The vertical diferances between the achal and predicted costs appear to be quite large Slepe of high-low line O The slope of the line appears to be reasonably steep indicating that, on average, utity costs in a quarter vary with machine-hours used O The slope of the line appears to be unreasonably steep indicating th on average, utlity costs in a quarter do not vary with machine hours ued Requirement 3. Everett anticipates that LMN will operate machines for 125.000 hours in quarter 9 Calculate the predicted utlity costs in quarter 9 using the cost fundion estimated in requirement 1 The predicted maintenance costa wauld be for quarter 9 (E i Data Table egative economically plausible relationship betw hip of higher machine-hours and utility costs. Quarter Utility Costs Machine-Hours "fir the data well. The vertical differences betw Quarter 1 120,000 S 265,000 not "fit the data well. The vertical differences b Quarter 2 75,000 200,000 Quarter 3 110.000 250,000 Quarter 4 126,000 290,000 to be reasonably stoep indicating that, on aver to be unreasonably steep indicating that, on a Quarter 5 90 000 220.000 Quarter 6. 115,000 270,000 s that LMN will operate machines for 125,000 H 105.000 275,000 g the cost function estimated in requirement Quarter 7 would be for quarter 9. Quarter 8 100.000 245.000 Print Done the palette and follow the instructions to create your graph Rick Everet, francial analyst at LMN Corporation, is amining the behavior of quarturly utliy costs for budgeling purposes Everett colects the folowing data on machine-houns worked and utitty conts for the past B qarten I (Cick the lcon so view the data) Read the pkem Requirement 1. Estimate the cost funcdion for the quarterly data uning the high low method (Complete al annwer boves ) (Aer you ht continun, the screun may taka you below the begening of the next step so, soul tack up to the tap of the step) Requirement 2. Plot and comment on the estimated cost tunction Pahn.Jes for the etated cent hunctien using the high tow method The data pointa for the quartars have altady been entered in for you (Enturge the graph and une he ine tutton diaplayed belon dra te graph) Rik Evert fruncial analyst at LMN Corporation. is mamining the behavior of quarterty sny cesta for budgeing purposes Evereti colecth the follwing data on machine haun worked and uity contn for he part quarters (Cick the icon to view the data) Read the reiement Commeet on the estimated cont function by choosing the correct statement to go with nach of the evakuation crtoria hted below. Economic plausibilty O The cost luncion shows a positive economically plauntle relaorship between machine houn and uity costs. There is a dear cut retatonshp of higher machine urs and uy c O The cost tanction shows a negeve economically plaustle relationship between machine hour end ity costs. Thare is nota duar ct latenship of higher machine hou and thy cont Goodnuss of O The high V ine sppears to the data wall. The vertical dierences between the artuat and predited conta appsar to be quite sa O The highow line appearsto not r the dats wel The verical iferences between the actual and prediced cn ppea ta be quit large Sepe of high ow line O The slope of the ine appears to be reasonably steep indicating hat n average, utlty costs in a quaite vary with machine hours ned O The slope of te he appears to be unmasonatly eap indicating that on averge uity costs ina quarter de not vary wth machine hours ned Rick Evereft, financial analyst at LMN Corporation, is esamining the behavior of quarterly utity costs for budgeting purposes Everett collects the following data on machine-hours worked and ulity costs for the (Click the icon to view the data) Read the requinmento O The cost function shows a negadive economically plausible relationship between machine hours and utlity costs There is not a dear-cut relationship of higher machine houn and utlity costs Goodness of fit O The high-low line appears to "Tr the data well. The vertical diferances botween the acual and predicted costs appear to be quite small O The high-low Iine appears to not "r the data well The vertical diferances between the achal and predicted costs appear to be quite large Slepe of high-low line O The slope of the line appears to be reasonably steep indicating that, on average, utity costs in a quarter vary with machine-hours used O The slope of the line appears to be unreasonably steep indicating th on average, utlity costs in a quarter do not vary with machine hours ued Requirement 3. Everett anticipates that LMN will operate machines for 125.000 hours in quarter 9 Calculate the predicted utlity costs in quarter 9 using the cost fundion estimated in requirement 1 The predicted maintenance costa wauld be for quarter 9 (E i Data Table egative economically plausible relationship betw hip of higher machine-hours and utility costs. Quarter Utility Costs Machine-Hours "fir the data well. The vertical differences betw Quarter 1 120,000 S 265,000 not "fit the data well. The vertical differences b Quarter 2 75,000 200,000 Quarter 3 110.000 250,000 Quarter 4 126,000 290,000 to be reasonably stoep indicating that, on aver to be unreasonably steep indicating that, on a Quarter 5 90 000 220.000 Quarter 6. 115,000 270,000 s that LMN will operate machines for 125,000 H 105.000 275,000 g the cost function estimated in requirement Quarter 7 would be for quarter 9. Quarter 8 100.000 245.000 Print Done the palette and follow the instructions to create your graph
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Solution Requirement 1 Total Cost Fixed Cost Variable Cost per unit Machine Hours Y a b X Yabx Ya18X ... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-0618736614
10th edition
Authors: Belverd Needles, Marian Powers, Susan Crosson
Posted Date:
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