Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers. Labor hours used in maintenance. Numbers of students enrolled. Month Total Maintenance Cost Number of hours Number of students 1 16,690 238 534 2 13,560 194 532 3 13,540 108 534 4 16,060 229 530 5 12,430 101 533 6 20,860 298 537 7 18,240 244 540 8 12,310 98 540 9 13,770 108 541 10 16,990 225 538 11 20,650 289 540 12 14,770 118 539 Next Semester 1 2 3 4 5 6 TOTAL Required: Prepare a Regression Analysis to determine the Cost Function. Assume that the number of students for the first semester for the next year is: 550, 575, 600, 635, 640 and 670 The numbers of hours is: 210, 225, 230, 245, 250 and 260 Determine the Total Cost for each month for the next year.

Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers. Labor hours used in maintenance. Numbers of students enrolled. Month Total Maintenance Cost Number of hours Number of students 1 16,690 238 534 2 13,560 194 532 3 13,540 108 534 4 16,060 229 530 5 12,430 101 533 6 20,860 298 537 7 18,240 244 540 8 12,310 98 540 9 13,770 108 541 10 16,990 225 538 11 20,650 289 540 12 14,770 118 539 Next Semester 1 2 3 4 5 6 TOTAL Required: Prepare a Regression Analysis to determine the Cost Function. Assume that the number of students for the first semester for the next year is: 550, 575, 600, 635, 640 and 670 The numbers of hours is: 210, 225, 230, 245, 250 and 260 Determine the Total Cost for each month for the next year.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Month	Total Maintenance Cost	Number of hours	Number of students
1	16,690	238	534
2	13,560	194	532
3	13,540	108	534
4	16,060	229	530
5	12,430	101	533
6	20,860	298	537
7	18,240	244	540
8	12,310	98	540
9	13,770	108	541
10	16,990	225	538
11	20,650	289	540
12	14,770	118	539
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