Chapter 3 Review (1) (1) - Microsoft Word (Product Activation Failed) ferences Mailings Review View A A A Title E 211 . T Normal 1 No Spaci... Heading 1 Heading 2 Paragraph Styles 7) Craigo is trying to find a cost equation for their monthly costs. Total costs and units produced are provided for the last 8 months are provided below. Month Units Produced Total Cost 1 2,131 $ 2 2,160 $ 3 2,117 $ 4 2,180 $ 33,085.00 33,103.00 33,070.00 33,137.00 5 6 7 2,102 $ 2,196 $ 2,128 $ 33,013.00 33,167.00 33,054.00 8 2,191 $ 33,140.00 I a) Use regression analysis on your BA II Plus calculator to find the fixed portion of total costs 16_7946.jpg IMG_7945.jpg IMG_7944pg O w MOSO word Product Activation Fanled Terences Mailings Review View A A A . 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Styles Paragraph 2,191 $ 8 33,140.00 a) Use regression analysis on your BA II Plus calculator to find the fixed portion of total costs b) Use regression analysis to find the variable portion of total costs c) Create the cost equation for Craigco (using regression analysis) d) What is the rsquared of this set of data? Is the formula a good fit? Why or why not? e) Calculate expected total costs if Craigco produces 2,150 units 1) Use the high-low method to find faced costs, variable costs and create the cost equation for total costs _7946.jpg IMG_7945.jpg IMG_7944.jpg o W Chapter 3 Review(1) (1) - Microsoft Word (Product Activation Failed) Herences Mailings Review View - ' ' EN 21 . . 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Subtitle Paragraph Styles e) Calculate expected total costs if Craigco produces 2,150 units f) Use the high-low method to find foed costs, variable costs and create the cost equation for total costs B) Calculate expected total costs if Craico produces 2,150 units h) Explain the difference between your answers in e and g, and explain which number is better to use for forecasting costs and why. 7946.jpg IMG_7945.jpg IMG_79469 o BI E W hp & Chapter 3Review(1) (1) - Microsoft Word (Product Activation Failed) View nes Mailings Review EN 21 T . . T Normal 1 No Spaci... Heading 1 Heading 2 Subtitle Styles Title Paragraph 8) ABC Corporation is analyzing its manufacturing overhead costs. It is trying to decide whether labour hours or units produced is a better driver of manufacturing overhead costs. The follow Information is available for the past 6 months. Mon Total Manufacturing Direct Labour Units MOH Cost per DL MOH Cost per th Overhead Hours Produced Hour unit $ $ $ 1 353,000.00 13,677 1,503 25.81 234.86 $ $ $ 2 378,000.00 13,184 1,648 28.67 229.37 $ $ $ 3 365,000.00 14,805 1,575 24.65 231.75 $ $ $ 4 348,000.00 12,029 1,485 28.93 234.34 $ $ $ 5 320,000.00 13,420 1,525 23.85 209.84 S $ $ 6 357,000.00 14,241 1,515 25.07 235.64 a) Are manufacturing overhead costs fixed, mixed or variable? b) Graph MOH costs against Direct Labour hours I 7946.jpg IMG_7945.jpg IMG_7944.jpg Chapter 3 Review1) (1) - Microsoft Word (Product Activation Failed) View References Mailings Review AA As . EEH 4 21 . Normal 1 No Spaci. Heading 1 Heading 2 Title Sut Paragraph c) Graph MOH costs against units produced Font Styles d) Are there any potential outliers in the data? e) Use Tegression analysis to find the cost equation for MOH using direct Labour hours as the cost driver. What is ther squared value? IMG_7946.jpg IMG_7945.jpg IMG_7944.jpg o Chapters Review() () - Microsoft Word (Product Activation Failed) View eferences Mailings Review A A A E 211 . 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Paragraph Styles e) Use regression analysis to find the cost equation for MOH using direct labour hours as the cost driver. What is ther squared value? 1) Forecast total MOH If ABC Corporation expects to have 14,500 labour hours B) Use regression analysis to find the cost equation for MOH using units produced as the cost driver. What is ther squared value? h) Forecast total MOH If ABC Corporation expects to produce 1,500 units 1) What is a better driver of manufacturing overhead costs? Why? MG_7946.jpg IMG_7945.jpg IMG_794409 DU 7 8
