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xz_007 [3.2K]
2 years ago
8

The Mac Davis Company specializes in the purchase, renovation, and resale of older homes. Mac employs several carpenters and pai

nters to do the work for him. It is essential for him to have accurate cost estimates so he can determine total renovation costs before he purchases a piece of property. If estimated renovation costs plus the purchase price of a house are higher than the house’s estimated resale value, it is not a worthwhile investment. Mac has been using the home’s interior square feet for his exterior paint cost estimations. Recently he decided to include the number of openings—the total number of doors and windows in a house—as a cost driver. Their cost is significant because they require time-consuming preparatory work and careful brushwork. The rest of the house usually is painted either by rollers or spray guns, which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of these expenses on his last 12 jobs:
House Square Feet Openings Cost
1 2,500 13 2,810
2 3,010 15 3,742
3 2,800 12 3,100
4 2,850 12 3,150
5 4,600 19 4,700

Required:
a. Using the high-low cost estimation technique, determine the cost of painting a 3,300-square-foot house with 14 openings. Also determine the cost for a 2,400-square-foot house with 8 openings.
b. Plot the cost data against square feet and against openings. Which variable is a better cost driver? Why?
c. Calculate a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model.
d. What are the sustainability issues for this company, and what is the role of cost estimation in this regard?
Business
1 answer:
Viefleur [7K]2 years ago
8 0

Answer:

Fed  for rat

Explanation:

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Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion co
klasskru [66]

Answer: 62.5%

Explanation:

Equivalent units = Units completed and transferred out + percentage completed of ending inventory

14,800 = (1,100 + 14,000 - 800) + Percentage

14,800 = 14,300 + Percentage amount completed

Percentage amount completed = 14,800 - 14,300

Percentage amount completed = 500 units

Percentage = Ending equivalent units / ending inventory

= (500/800) * 100

= 62.5%

8 0
3 years ago
Michael (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2017 when he
Nadya [2.5K]

Answer:

correct option is C. $250,000

Explanation:

given data

sold the home and gain = $300,000

to find out

amount of the gain allowed to exclude from gross income

solution

we know that Michael owned the property for the 10 years

so here Michael is not allowed to exclude the gain = 10 % that is $30,000

and The maximum gain exclusion permitted =  $250000

so here Michael will recognize $50,000 because amount exceed $250,000 for a single taxpayer and exclusion of gain on sales of property tax payer need to own and occupy the property as principle residence for the  2 out of 5 year immediately preceding the sales

so here correct option is C. $250,000

5 0
3 years ago
A vendor allows a 2% discount if an invoice is paid within 10 days. a purchase was made for $5,000 on june 10 and paid on june 1
Kamila [148]
An invoice is a document given from the seller to the buyer stating the quantity of products bought, agreed prices and transactions made between the two parties. If the buyer bought the product in June 10 and decides to pay on the 19th, only 9 days have passed since the date of purchase. This is inclusive of the agreement written that 2% discount is given if paid not more than 10 days. Therefore, the check should be

($5,000)(1-.0.02) = $4900
8 0
3 years ago
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to a. making more than the customer wants or more than y
motikmotik

Answer:

d. not encouraging employee ideas or undermining their efforts.

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.

The definition of Not Utilizing Staff Talent in the Eight Wastes refers to not encouraging employee ideas or undermining their efforts.

6 0
3 years ago
One person’s spending becomes another person’s income. This statement is
Paha777 [63]

Answer:

d. the Circular Flow Model

Explanation:

Based on the information provided within the question it can be said that this statement is an example of the Circular Flow Model. This model (like mentioned in the question) illustrates the flow of cash from different people or company's in different industries. Where one person/company pays another, which takes it in as income and uses that to pay another company for what they need and so on.

8 0
3 years ago
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