please dont provide answer in image format thank you M5-15 (Static) Estimating Cost Behavior Using Least-Squares Regression [LO 5-4]Havana Hats makes the world's best hats. Information for the last eight months follows:Number of BatsProduced#,0004.500MonthJanuaryFebruaryMarchAprilMay7,0008,6003,7506,0003,0004,2505,0005,750Suppose Havana performed a least-squares regression and obtained the following results:JuneJulyAugustInterceptx Variable ITotal Cost$7,0005,0006,2507,7505,0006,250Coefficienta2710.590.56Total costRequired:Put Havana's results into a linear equation format (y= a + bx)Note: Round your final answers to 2 decimal places.(Number of hats) nayJuneJulyAugustSuppose Havana performed a least-squares regression and obtained the following results:Coefficients271.590.56InterceptX Variable 13,3286,0003,0005,000Required:Put Havana's results into a linear equation format (ya+bxNote: Round your final answers to 2 decimal places.Which method is most accurate?High-low methodRegression method6.2504,2505,750(Number of hats)

Regression Equation : Y = a + bX Where, Y= Total Cost a = Fixed Cost ( intercept) b= Variable cost…

Suppose Havana performed a least-squares regression and obtained the following results Coefficients 2718.59 0.56 Intercept X Variable 1 Required: Put Havana's results into a linear equation format (ya b Note: Round your final answers to 2 decimal places. Which method is most accurate? O High-low method O Regression method (Number of hats)

Suppose Havana performed a least-squares regression and obtained the following results Coefficients 2718.59 0.56 Intercept X Variable 1 Required: Put Havana's results into a linear equation format (ya b Note: Round your final answers to 2 decimal places. Which method is most accurate? O High-low method O Regression method (Number of hats)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...

See similar textbooks

Similar questions

Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. a.Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets. b.Determine the variable cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Company’s purchasing cost and number of purchase orders.The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Intercept 15,021 (rounded to the nearest dollar)X variable 1 9.74 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the vari-able rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchaseorders, what is the total estimated purchasing cost for that month? (Round your answer tothe nearest dollar.)3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year andexpects 5,340 purchase orders? What will estimated total purchasing cost be? (Round youranswer to the nearest dollar.) What is the total fixed purchasing cost? Why doesn’t it equalthe fixed cost calculated in Requirement 1?
The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X
Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.
10-19 A regression equation is set up, where the dependent variable is total costs and the independent variable is production. A correlation coefficient of 0.70 implies that: a. The coefficient of determination is negative. b. The level of production explains 49% of the variation in total costs c. There is a slightly inverse relationship between production and total costs. d. A correlation coefficient of 1.30 would produce a regression line with better fit to the data
15-Assume that your senior manager provided you the following data to find out the breakeven point in sales. Selling price per unit OMR 25, Total cost OMR 720,000, variable cost per unit OMR 20 and total production 30000 units. a. None of the given options b. OMR 500000 c. OMR 600000 d. OMR 36000
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
56. The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost 3 P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to: Group of answer choices P1,837.50 P1,808.50 P1,787.52 P1,799.25 P1,745,46 P1,804.50
If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? A. decrease by P25,000 B. increase by P268,000 C. decrease by (P293,000) D. increase by P25,000
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million