The Cary Plant produces a part for agricultural equipment. The plant produces to demand rather than...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Cary Plant produces a part for agricultural equipment. The plant produces to demand rather than maintaining significant Inventories, so there can be significant fluctuation in monthly output. One of the significant cost Items is maintenance and repair (M&R) costs. M&R consists of both routine and unscheduled costs. The plant manager is trying to understand what effect production volume has on M&R costs and is getting conflicting Information from the machine operators (who believe that higher output is related to higher M&R costs) and the financial staff (who say that their analyses do not show this). Data on monthly output (in machine hours) and monthly M&R costs for the most recent two fiscal years follow: Month October November December January February March April May June July August September October November December January February March April May June July August September Regression Statistics Multiple R R Square Standard Error Machine-Hours 223,560 235,980 397,440 310,500 385,020 558,900 273,240 Observations Coefficients 360,180 285,660 298,080 322,920 186,300 Intercept Revenues 211,140 322,920 372,600 385,020 447,120 633,420 335,340 298,080 422,280 477,120 360,180 285,660 M&R Cost $56,518 59,320 24,150 34,230 36, 340 Required: b. Using Excel, estimate a linear regression with maintenance and repair (M&R) cost as the dependent variable and production (measured in machine hours) as the independent variable. 9,140 36,580 Note: Negative amounts should be Indicated by a minus sign. Round "Multiple R, R Square and Revenues to 5 decimal places, "Standard Error" to 1 decimal place, and "Intercept" to the nearest whole number. 43,380 53,230 52,298 30,250 55,570 48,070 29,780 42,670 38, 220 15,940 230 41,748 35,870 22,040 28,140 28,140 42,190 The Cary Plant produces a part for agricultural equipment. The plant produces to demand rather than maintaining significant Inventories, so there can be significant fluctuation in monthly output. One of the significant cost Items is maintenance and repair (M&R) costs. M&R consists of both routine and unscheduled costs. The plant manager is trying to understand what effect production volume has on M&R costs and is getting conflicting Information from the machine operators (who believe that higher output is related to higher M&R costs) and the financial staff (who say that their analyses do not show this). Data on monthly output (in machine hours) and monthly M&R costs for the most recent two fiscal years follow: Month October November December January February March April May June July August September October November December January February March April May June July August September Regression Statistics Multiple R R Square Standard Error Machine-Hours 223,560 235,980 397,440 310,500 385,020 558,900 273,240 Observations Coefficients 360,180 285,660 298,080 322,920 186,300 Intercept Revenues 211,140 322,920 372,600 385,020 447,120 633,420 335,340 298,080 422,280 477,120 360,180 285,660 M&R Cost $56,518 59,320 24,150 34,230 36, 340 Required: b. Using Excel, estimate a linear regression with maintenance and repair (M&R) cost as the dependent variable and production (measured in machine hours) as the independent variable. 9,140 36,580 Note: Negative amounts should be Indicated by a minus sign. Round "Multiple R, R Square and Revenues to 5 decimal places, "Standard Error" to 1 decimal place, and "Intercept" to the nearest whole number. 43,380 53,230 52,298 30,250 55,570 48,070 29,780 42,670 38, 220 15,940 230 41,748 35,870 22,040 28,140 28,140 42,190
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Cary Plant produces a part for agricultural equipment. The plant produces to demand rather than maintaining significant Inventories, so there can be significant fluctuation in monthly output. One...
-
Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 18,000 17,500 14,500 Your friend, Chris Coffee, has been running a successful coffee shop for the last couple...
-
collected: January February March April May June July August Zachary's Pizza makes specialty pizzas. Data for the past eight months were Labor Cost $7,000 8,140 9,899 9,787 8,490 7,450 9,490 7,531...
-
A trader has a soft limit of $8MM USD and a hard limit of $10MM USD. Their current NOP is $3MM USD. They purchase $6MM USD, sell $1MM USD, and then purchase another $5MM USD. Which of the following...
-
Eastland Company reports the following for the month of June. Instructions (a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual...
-
A gyroscope is precessing as in Fig. 10.32. What happens if you gently add some weight to the end of the flywheel axis farthest from the pivot? Circular motion of flywheel axis (precession) Flywheel...
-
In a group of 160 graduate engineering students, 92 are enrolled in an advanced course in statistics, 63 are enrolled in a course in operations research, and 40 are enrolled in both. How many of...
-
The marketing and sale of beer and alcoholic beverages in Canada are governed by Canadian provincial marketing agencies or liquor boards. In most of the ten Canadian provinces, these liquor boards...
-
Using the Internet analyze a particular current event in finance (or economics) using at least three sources. You will summarize your current event or topic and support your viewpoints and...
-
Calculate the following variances and indicate whether each variance is favorable or unfavorable: 1. Volume Variance 2. Total Variance Expected Treatments= 1,000 Standard Cost Profile Lab Treatment...
-
Hadrian Dealers employs a full-time bookkeeper. However, the bookkeeper fell ill and Claudius, the owner, approached you for assistance. He is unsure of how to enter the subsidiary journals into the...
-
Balance sheet outlines where the business stands in terms of what it owns, what it owes, and how much investment the owners have in the business. It is the statement of the financial position of a...
-
North Carolina broker Greg is helping his seller client Kali sell her condo. He's including the Owners' Association Disclosure Addendum with the Offer to Purchase and Contract form. Based on this...
-
Adam's intercollegiate athletics supervisor explains the procedure for filling out expense reports when traveling. Adam listens but does not take notes, and he doesn't record where the files for the...
-
Dave is a salaried employee who works in a gas station. He only earns from his job and has no other source of income. He gets a big tax refund at the end of the year but is always struggling to cover...
-
When securities require registration with the Securities and Exchange Commission, the securities can be sold during what phase of the registration process?
-
the significance of genetic mutations.
-
Determine the reactions in supports A and D and connections B and C. Sketch its shear and moment diagram and determine the magnitude ankoration of the maximum shear and moment for every member. 18 3...
-
An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set an acceptable range of repair time of 50 minutes to 90 minutes. Two...
-
Referring to Problem 16, suppose that each server could handle four customers per hour. Answer the questions posed in the problem. Explain why the impact of reassigning customers is much less than in...
-
Three recent college graduates have formed a partnership and have opened an advertising firm. Their first project consists of activities listed in the following table. a. Draw the precedence diagram....
-
The two surfaces of a double convex, thin lens made of plastic each have an absolute value of radius of curvature of \(1.8 \mathrm{~mm}\). If the focal length of the lens is \(4.5 \mathrm{~mm}\),...
-
The radius of curvature of one surface of a glass lens \((n=1.45)\) is \(1.50 \mathrm{~m}\). If sunlight is focused at a point \(0.300 \mathrm{~m}\) away from the lens, what is the radius of...
-
You have a thin lens that is convex on both surfaces. The material of which the lens is made has index of refraction \(n=1.40\), and the radii of curvature are \(\left|R_{1} ight|=300 \mathrm{~mm}\)...
Study smarter with the SolutionInn App