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Sauron [17]
3 years ago
10

The Armer Company is accumulating data to be use in preparing its annual profit plan for the coming year. The cost behavior patt

ern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: Month Maintenance Cost Machine Hours Jan. $ 4,200 480 Feb. 3,000 320 Mar. 3,600 400 Apr. 2,820 300 May 4,350 500 June 2,960 310 July 3,030 320 Aug. 4,470 520 Sept. 4,260 490 Oct. 4,050 470 Nov. 3,300 350 Dec. 3,160 340 Sum $ 43,200 4,800 Average $ 3,600 $ 400 Average cost per hour $ 9.00 a (intercept) $ 684.65 b (coefficient) 7.2884 Standard error of the estimate 34.469 R-squared 0.99724 t-value for b 60.105
Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at:________.
Business
1 answer:
tankabanditka [31]3 years ago
3 0

Answer:

Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at: <u>$3,746</u>.

Explanation:

From the regression results given in the question, we can obtain the following:

a. Intercept = $684.65

b. Coefficient = $7.2884

Based on the above, the estimated regression equation can be provided as follows:

Maintenance costs = $684.65 + ($7.2884 * Maintenance hours) ............. (1)

Since we are given 420 maintenance hours in a month, we therefore substitute "Maintenance hours = 420" into equation (1) to obtain the maintenance costs that should be budgeted as follows:

Maintenance costs = $684.65 + ($7.2884 * 420) = $684.65 + $3,061.128 = $3,745.778

Rounding to the nearest dollars, we have:

Maintenance costs = $3,746

Therefore, based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at: <u>$3,746</u>.

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kotykmax [81]

Answer:

Manufacturing costs incurred during 2017= $769,000

Explanation:

Giving the following information:

Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands):

Direct materials:

Beginning inventory, Jan. 1, 2017= $135,000

Purchases of direct materials= 260,000

Cost of direct materials available for use= 395,000

Ending inventory, Dec. 31, 2017= 72,000

Direct materials used $323,000

Direct manufacturing labor 210,000

Manufacturing overhead costs:

Indirect manufacturing labor= $95,000

Plant utilities= 19,000

Depreciation—plant, building, and equipment= 43,000

Plant insurance= 2,000

Repairs and maintenance—plant= 17,000

Equipment leasing costs= 60,000

Total manufacturing overhead costs 236,000

Manufacturing costs incurred during 2017= direct materials used + direct labor + manufacturin overhead= 323000 + 210000 + 236000= $769,000

3 0
3 years ago
Curry Seasonings has a patented technology for finely grinding spices while maintaining flavor. This has allowed the company to
VLD [36.1K]

Answer:

<em>Run a recoverability test and then a fair value test.</em>

Explanation:

Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.

<em>Measuring the magnitude of the loss requires two steps:</em>

  • Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
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4 0
3 years ago
Where would revenue be maximized for a company facing a linear demand curve
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Answer:

at equilibrium point

Explanation:

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3 years ago
Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day inve
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1 pound = $1.6582

good luck

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rosijanka [135]

Answer:

c. $1,800

Explanation:

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It incorporates the opportunity cost of taking a particular activity into its calculation of cost.

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$4000 - $2200 = $1800

I hope my answer helps you

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