QUESTION 22

1. Bishop Corp has identified two activities in its activity based costing system: setups and production. The activity overhead rates for these two activities are $322 per setup and $2.40 per direct labor hour, respectively. To make product X5, Bishop incurred $730 in direct materials costs, $150 in direct labor costs, and used 4 setups and 30 direct labor hours. The total overhead assigned to product X5 would be:

   		$880
   		$1,360
   		$2,240
   		Cannot be determined

2. QUESTION 23

3. A hospital uses the number of Patient-Days as their predictor of total maintenance costs, Regression analysis produced the following Excel output. What is the best estimate of FIXED maintenance costs when the hospital expects 2,000 patient-days?

   Y-Intercept	$5,968
   X-variable (patient days)	$0.741
   R-squared	0.791

   		$5,968
   		$6,550
   		$1,482
   		$7,450

4. Cari German uses gas to heat her home. She has accumulated the following information regarding her monthly gas bill and monthly heating degree-days.

   Month	Gas Bill (Y)	Heating Degree-Days (X)
   February	940	2100
   April	700	600

   The equation representing the relationship between the gas bill (Y) and heating degree-days (X) is:

   		Y = $604 + $6.25X
   		Y = $6.25X
   		Y = $0.16X
   		Y = $604 + $0.16X