Scattergraph Method
Refer to the information for Luisa Crimini above.
Required:
CONCEPTUAL CONNECTION Prepare a scattergraph based on Luisa’s data. Use monthly cost for the vertical axis and number of appointments for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of tanning services and the number of appointments?
Use the following information for Exercises 3-44 through 3-46:
Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows:
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Chapter 3 Solutions
EBK MANAGERIAL ACCOUNTING: THE CORNERST
- Check image file for question Q1a. Allocate the service department costs to the two operating departments using the direct method. b.Allocate the service department cost to the two operating departments using ,I)the step-down method (Allocate administrative service first) . ii)the step down method (Allocoate Maintenance service first) c. Assuming you are the manager of the Daily Patient department.Discuss which method of cost allocation would you prefer.Justify your decision d.Mr Smith the financial controller of LabAid is convinced that the step-down method allocates more costs to the operating departments than the direct method.Do you agree with ,Mr Smith.Explain.arrow_forward<><>arrow_forwardThe Human Resources Manager for Optilytics LLC is evaluating applications for the position of Senior Data Scientist. The file OptilyticsLLC presents summary data of the applicants for the position. a. Use a PivotTable in Excel to create a joint probability table showing the probabilities associated with a randomly selected applicants sex and highest degree achieved. Use this joint probability table to answer the questions below. b. What are the marginal probabilities? What do they tell you about the probabilities associated with the sex of applicants and highest degree completed by applicants? c. If the applicant is female, what is the probability that the highest degree completed by the applicant is a PhD? d. If the highest degree completed by the applicant is a bachelors degree, what is the probability that the applicant is male? e. What is the probability that a randomly selected applicant will be a male whose highest completed degree is a PhD?arrow_forward
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- ABC-A Service Application Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current costing system adds the cost of all of these services (space, meals, and MS) and divides it by total resident days to get a cost per resident day for each month. Recognizing that MS tends to vary signifi- cantly among the residents, Grand Haven's accountant recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the lowest level of service and D representing the highest level of service. Two cost driv- ers being considered for measuring MS costs are number of assistance calls and number of…arrow_forwardA sociologist was hired by a large city hospital to investigate the relationship between the number of unauthorized days that employees are absent per year and the distance (miles) between home and work for the employees. A sample of 10 employees was chosen, and the following data were collected. a. Develop a scatter chart for these data. Does a linear relationship appear reasonable? Explain. b. Use the data to develop an estimated regression equation that could be used to predict the number of days absent given the distance to work. What is the estimated regression model? c. What is the 99% confidence interval for the regression parameter 1? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter 1 is equal to zero? d. What is the 99% confidence interval for the regression parameter 0? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter 0 is equal to zero? e. How much of the variation in the sample values of number of days absent does the model you estimated in part (b) explain?arrow_forwardHome * CengageNOWv2 | Online teachin x +. takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How E Print Item Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,000 per month plus 4% of sales Office salaries expense $50,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $500,000 $750.000 $1,000,000 Variable cost: Sales commissions Advertising expense Miscellaneous…arrow_forward
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