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lions [1.4K]
3 years ago
9

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance. The follow

ing computer output was received:Intercept40,000Slope20The driver used was the number of machine hours.Using the cost formula for the equipment maintenance cost, what is the predicted cost of equipment maintenance for April, assuming that 8,000 machine hours will be logged in April?
a. $140,000
b. $200,000
c. $185,000
d. None of these choices are correct.
Business
1 answer:
lisabon 2012 [21]3 years ago
4 0

Answer:

correct option is b. $200,000

Explanation:

given data

Intercept = 40,000

Slope = 20

machine hours X = 8000

to find out

what is the predicted cost of equipment maintenance for April

solution

we will use here least square equation that  will be

Y = intercept + Slope ×  X      ............................1

here Y is cost of maintenance  and X is maintenance hours

so put here value we get from equation 1

Y = 40000 +  ( 20 ×   8000 )

Y = 40000 + 160000

Y = 200000

so  predicted cost of equipment maintenance for April is 200000

correct option is b. $200,000

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company manufactures pillows. the operating budget was based on production of ​pillows, with ​machine-hours allowed per pillow.
MatroZZZ [7]

a. The budgeted variable overhead is $468,750.

b. The variable overhead spending variance is $38,100 Favorable

c. The variable overhead efficiency variance is $30,000 Favorable

<h3>What is variable overhead?</h3>

Variable overhead is a cost of running a business that varies with operational activity. Variable overheads rise and fall in lockstep with production output. Overheads, such as administrative overhead, are often a set cost.

The variable manufacturing overhead controllable variance reflects how effectively the company stuck to its budget. The difference between the planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced is the fixed factory overhead volume variance.

a. The budgeted variable overhead for 2017 = Budgeted hours * Variable overhead rate per hour

= (25000*0.75)*$25 = $468,750

b. Variable overhead spending variance = (SR - AR) * AH = ($25 - $23) * 19050 = $38,100 Favorable

c. Variable overhead efficiency variance = (SH - AH) * SR = (27000*0.75 - 19050) * $25 = $30,000 Favorable

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4 0
1 year ago
Identify each of the following statements about linear programming problems as true or false, and then justify your answer.
nika2105 [10]

Answer and Explanation:

a. The given statement is true as the corner point at the objective function should be feasible solution which is no longer as compared with the value for every adjacent CPF solution as compared with its optimal

b. The given statement is false as the solution can be an edge

c. The given statement is true as it shows the direct relation between the two things

3 0
3 years ago
What would be you KPIs as the finance and human Resource officer?
Debora [2.8K]

Answer:

1.37 - 1.90

Explanation:

Really hard to say a exact number but here's and idea.

6 0
3 years ago
The difference between the actual cost incurred and the standard cost is called the?
Taya2010 [7]

A Standard Cost Variance is a difference between the actual cost incurred and the standard cost against which it is measured.

The main difference between normal costing and standard costing is that normal costing uses actual costs for material and direct labor costs, whereas standard costing uses predefined costs for these two items. That's it.

This difference between standard cost and actual cost is called variance. An unfavorable variance occurs if the actual cost is higher than the standard.

The main difference between marginal costing and standard costing is that marginal cost is a subset of standard cost and standard is a superset of marginal costing. Description: Standard costing is a costing method and there are two types of costing methods.

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4 0
1 year ago
Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine the cost of performing engine r
Law Incorporation [45]

Answer:

7.7 per direct labor hour

Explanation:

Number of direct labor hours = 700,000 / 25

Number of direct labor hours = 28,000 labor hours

Overhead cost = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Overhead cost = 46,100 + 128,300 + 23,300  + 17,900

Overhead cost = 215,600

Predetermined overhead rate = Overhead cost/Direct labor hours

= 215,600 / 28,000 labor hours

= 7.7 per direct labor hour

5 0
3 years ago
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