Business
AccountingManagerial Accounting: The Cornerstone of Business Decision-MakingMethod of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? ( Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? ( Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
BuyFindarrow_forward
Managerial Accounting: The Corners...
7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
BuyFindarrow_forward
Managerial Accounting: The Corners...
7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
Solutions
Chapter
Section
Chapter 3, Problem 61P
Textbook Problem
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula
Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results:
Required:
- 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity.
- 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.)
- 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
check_circle
Expert Solution
Chapter 3 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Show all chapter solutions
addCh. 3 - Why is knowledge of cost behavior important for...Ch. 3 - What is a driver? Give an example of a cost and...Ch. 3 - Suppose a company finds that shipping cost is...Ch. 3 - Some firms assign mixed costs to either the fixed...Ch. 3 - Explain the difference between committed and...Ch. 3 - Explain why the concept of relevant range is...Ch. 3 - Why do mixed costs pose a problem when it comes to...Ch. 3 - Describe the cost formula for a strictly fixed...Ch. 3 - Describe the cost formula for a strictly variable...Ch. 3 - What is the scattergraph method, and why is it...
Ch. 3 - Describe how the scattergraph method breaks out...Ch. 3 - What are the advantages of the scattergraph method...Ch. 3 - Describe the method of least squares. Why is this...Ch. 3 - What is meant by the best-fitting line?Ch. 3 - What is the difference between the unit cost of a...Ch. 3 - If a company produces 10,000 units and sells 8,000...Ch. 3 - (Appendix 3A) Explain the meaning of the...Ch. 3 - A factor that causes or leads to a change in a...Ch. 3 - Which of the following would probably be a...Ch. 3 - Which of the following would probably be a fixed...Ch. 3 - In the cost formula, the term 128,000,000 a. is...Ch. 3 - In the cost formula, the term 12,000 a. is the...Ch. 3 - In the cost formula, the term Number of Patient...Ch. 3 - In the cost formula, the term Total Cost a. is the...Ch. 3 - The following cost formula for total purchasing...Ch. 3 - An advantage of the high-low method is that it a....Ch. 3 - Select the independent and dependent variables.Ch. 3 - Select the correct set of high and low months.Ch. 3 - An advantage of the scattergraph method is that it...Ch. 3 - The total cost for monthly supervisory cost in a...Ch. 3 - Yates Company shows the following unit costs for...Ch. 3 - (Appendix 3A) In the method of least squares, the...Ch. 3 - Creating and Using a Cost Formula Big Thumbs...Ch. 3 - Using High-Low to Calculate Fixed Cost, Calculate...Ch. 3 - Using High-Low to Calculate Predicted Total...Ch. 3 - Using High-Low to Calculate Predicted Total...Ch. 3 - Using Regression to Calculate Fixed Cost,...Ch. 3 - Inventory Valuation under Absorption Costing Refer...Ch. 3 - Inventory Valuation under Variable Costing Refer...Ch. 3 - Absorption-Costing Income Statement Refer to the...Ch. 3 - Variable-Costing Income Statement Refer to the...Ch. 3 - Creating and Using a Cost Formula Kleenaire Motors...Ch. 3 - Using High-Low to Calculate Fixed Cost, Calculate...Ch. 3 - Using High-Low to Calculate Predicted Total...Ch. 3 - Brief Exercise 3-28 Using High-Low to Calculate...Ch. 3 - Using Regression to Calculate Fixed Cost,...Ch. 3 - Inventory Valuation under Absorption Costing Refer...Ch. 3 - Inventory Valuation under Variable Costing Refer...Ch. 3 - Brief Exercise 3-32 Absorption-Costing Income...Ch. 3 - Brief Exercise 3-33 Variable-Costing Income...Ch. 3 - Variable and Fixed Costs What follows are a number...Ch. 3 - Cost Behavior, Classification Smith Concrete...Ch. 3 - Classifying Costs as Fixed and Variable in a...Ch. 3 - Use the following information for Exercises 3-37...Ch. 3 - Use the following information for Exercises 3-37...Ch. 3 - Step Costs, Relevant Range Bellati Inc. produces...Ch. 3 - Matching Cost Behavior Descriptions to Cost...Ch. 3 - Examine the graphs in Exercise 3-40. Required: As...Ch. 3 - Use the following information for Exercises 3-42...Ch. 3 - Use the following information for Exercises 3-42...Ch. 3 - High-Low Method Refer to the information for Luisa...Ch. 3 - Scattergraph Method Refer to the information for...Ch. 3 - Method of Least Squares Refer to the information...Ch. 3 - Use the following information for Exercises 3-47...Ch. 3 - Use the following information for Exercises 3-47...Ch. 3 - Method of Least Squares, Developing and Using the...Ch. 3 - The method of least squares was used to develop a...Ch. 3 - Identifying the Parts of the Cost Formula;...Ch. 3 - Inventory Valuation under Absorption Costing...Ch. 3 - Inventory Valuation under Variable Costing Lane...Ch. 3 - Income Statements under Absorption and Variable...Ch. 3 - (Appendix 3A) Method of Least Squares Using...Ch. 3 - (Appendix 3A) Method of Least Squares Using...Ch. 3 - Identifying Fixed, Variable, Mixed, and Step Costs...Ch. 3 - Identifying Use of the High-Low, Scattergraph, and...Ch. 3 - Identifying Variable Costs, Committed Fixed Costs,...Ch. 3 - Scattergraph, High-Low Method, and Predicting Cost...Ch. 3 - Method of Least Squares, Predicting Cost for...Ch. 3 - Cost Behavior, High-Low Method, Pricing Decision...Ch. 3 - Jana Morgan is about to sign up for cellular...Ch. 3 - Variable and Fixed Costs, Cost Formula, High-Low...Ch. 3 - Cost Separation About 8 years ago, Kicker faced...Ch. 3 - Variable-Costing and Absorption-Costing Income...Ch. 3 - Refer to the information for Farnsworth Company...Ch. 3 - (Appendix 3A) Scattergraph, High-Low Method,...Ch. 3 - (Appendix 3A) Separating Fixed and Variable Costs,...Ch. 3 - (Appendix 3A) Cost Formulas, Single and Multiple...Ch. 3 - Suspicious Acquisition of Data, Ethical Issues...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Show solutions addWhich of the following is often called a compensating control? a. Transaction authorization b. Supervision c. A...
Accounting Information Systems
What adjusting entries should be reversed?
College Accounting, Chapters 1-27
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of ...
Financial Accounting
Estimated warranty liability Quantas Industries sold 325,000 of consumer electronics during July under a nine-m...
Corporate Financial Accounting
Transactions in a job order cost system Five selected transactions for the current month are indicated by lette...
Financial And Managerial Accounting
In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts receivable, ...
Intermediate Accounting: Reporting And Analysis
Statement of stockholders equity The stockholders equity T accounts of I-Cards Inc. for the year ended December...
Financial & Managerial Accounting
Discuss the growing importance of scanner-based research
MKTG 12:STUDENT ED.-TEXT
In the long-run equilibrium of a competitive market with identical firms, what are the relationships among pric...
Principles of Economics (MindTap Course List)
Why should policymakers think about incentives?
Essentials of Economics (MindTap Course List)
(Role of Theory) What good is economic theory if it can't predict the behavior of a specific individual?
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Finally, you can also use the information on the Internet to value the entire corporation. This approach requir...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Governments may intervene in a market economy in order to a. protect property rights. b. correct a market failu...
Principles of Microeconomics (MindTap Course List)
What is diversification? Does a stockholder get a greater benefit from diversification when going from 1 to 10 ...
Principles of Macroeconomics (MindTap Course List)
DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The proje...
Fundamentals of Financial Management (MindTap Course List)
Rate yourself on the following 15 behaviors and characteristics, according to the following scale. = Strongly d...
Management, Loose-Leaf Version
Given a description of a companys marketing mix, classify the elements of the marketing mix and the category of...
Contemporary Marketing
Describe the elements common to most current definitions of internal control.
Accounting Information Systems
Happy Bank starts with 200 in bank capital. It then accepts 800 in deposits. It keeps 12.5 percent (1/8th) of d...
Brief Principles of Macroeconomics (MindTap Course List)
Assume that you are the owner of a small company that produces outdoor living furniture. Describe how you could...
Foundations of Business (MindTap Course List)
The Hawaii Visitors Bureau collects data on visitors to Hawaii. The following questions were among 16 asked in ...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Why must researchers document their sources meticuousIy?
Essentials of Business Communication (MindTap Course List)
Direct materials variances Dvorak Company produces a product that requires five standard pounds per unit. The s...
Financial & Managerial Accounting
The debits and credits from two transactions are presented in the following creditors (suppliers) account: Desc...
Financial Accounting
The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are a...
College Accounting (Book Only): A Career Approach
Use the information presented in Problem C-1 to solve this problem.
Bean Nursery sells bark to its customers at...
College Accounting (Book Only): A Career Approach
Provided below is a trial balance for Juanitas Delivery Service. Use this trial balance for Exercises 3-10A, 3-...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Quick ratio The current assets and current liabilities for Apple Inc. and Dell, Inc. , are as follows at the en...
Accounting (Text Only)
REPLACEMENT ANALYSIS The Bigbee Bottling Company is contemplating the replacement of one of its bottling machin...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Every year, the U.S. Coast Guard collects data and compiles statistics on reported recreational boating acciden...
Statistics for Business & Economics, Revised (MindTap Course List)
The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units. Calculated with t...
Principles of Macroeconomics (MindTap Course List)
What are the major features of a balance-forward and an open-item accounts receivable system?
Pkg Acc Infor Systems MS VISIO CD
YIELD TO CALL Six years ago the Singleton Company issued 20-year bonds with a 14% annual coupon rate at their 1...
Fundamentals of Financial Management (MindTap Course List)
In terms of signaling behavior: a. Why is wearing a suit a weaker signal of ability than higher educational ach...
Exploring Economics
Give an example of a qualitative factor that shouldbe considered in a capital investment analysis related to ac...
Survey of Accounting (Accounting I)
For social security purposes, what conditions must an individual meet to be classified as a covered employee?
PAYROLL ACCT.,2019 ED.(LL)-TEXT
A corporation issued 2,000,000 of common stock in exchange for 2,000,000 of fixed assets. Where would this tran...
Corporate Financial Accounting
When putting in place a lean supply system, what changes typically occur in the ordering and transportation sys...
Purchasing and Supply Chain Management
Identify and explain three methods for achieving strategic alignment.
Cornerstones of Cost Management (Cornerstones Series)
What are the basic motives for the transactions demand, precautionary demand, and speculative demand? Explain h...
Economics For Today
The production line employees at Grummins Engine work four days per week, 10 hours per day. Each day of the wee...
Practical Management Science
Identify each of the following as either an adverse selection problem or a moral hazard problem: a. Poor driver...
Economics (MindTap Course List)
Many movie theaters charge a lower admission price for the first show on weekday afternoons than they do for a ...
Macroeconomics
Use the accompanying figure to answer questions 2-4. 4. Which quantity in the figure is consistent with profit ...
Microeconomics
Costs per equivalent unit and production costs Based on the data in Exercise 17-14, determine the following: A....
Managerial Accounting
Exercise 1-54 Annual Report items DeSalle Companys annual report includes the following items: financial statem...
Cornerstones of Financial Accounting
What is the difference between a price ceiling and a price floor? If a price ceiling for a good is set below th...
Macroeconomics: Private and Public Choice (MindTap Course List)
Over long periods of time, the rate of return of an average investment in the stock market has exceeded the ret...
Microeconomics: Private and Public Choice (MindTap Course List)
Key Concept: Increasing-Cost Industry
Suppose that, in the long run, the price of feature films rises as the mo...
Micro Economics For Today
Key Concept: Change in money supply
Assume a fixed demand for money curve and the Fed decreases the money suppl...
MACROECONOMICS FOR TODAY
Name five countries with a high income per capita. Why do you think the income is so high in these countries? H...
Economics: Private and Public Choice (MindTap Course List)
Should a multinational organization operate as a tightly integrated, worldwide business system, or would it be ...
Understanding Management (MindTap Course List)
