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What is the estimated total labor costs at Divaxo Company Answer the following questions using the information below: For Divaxo Company, labor-hours are 30,000 and wages $130,000 at the high point of the relevant range, and labor-hours are 18,000 and wages $85,000 at the low point of the relevant range. 1) What is the slope coefficient? A) $4.45 B) $3.75 C) $4.33 D) $4.72 2) What is the constant? A) $17,500 B) $45,00 ...

Other / Other 30 Mar 2016

Multiple regression analysis uses only independent variables 1) In using high-low method, the slope coefficient is calculated by dividing the difference between highest and lowest observations of the cost driver by the difference between costs associated with highest and lowest observations of the cost driver. 2) Simple regression analysis estimates the relationship between the dependent variable and one independent variable. 3) ...

Other / Other 30 Mar 2016

Identify the linear cost function equation The Bover Company has provided the following information: Units of Output 33,000 Units 46,200 Units Direct materials $ 316,800 $ 443,520 Workers' wages 1,188,000 1,663,200 Supervisors' salaries 343,200 343,200 Equipment depreciation 166,320 166,320 Maintenance 89,760 121,440 Utilities 422,400 580,800 Total $2,526,480 $3,318,480 Using the high-low method and the information prov ...

Other / Other 30 Mar 2016

Cross-sectional data analysis 1) Which of the following represents cross-sectional data? A) indirect manufacturing labor costs for the past 5 years B) number of machine-hours used for the past 10 years C) personnel costs of a month at 10 different organizations D) maintenance cost of machine in a plant for the past 3 years 2) A plot of data that results in bunched points with little slope generally indicates ________. A) a stron ...

Other / Other 30 Mar 2016

How would the cost function be stated Answer the following questions using the information below: Presented below are the production data for the first six months of the year for the mixed costs incurred by Vertise Company. Month Cost Units January $4,890 4,100 February 4,426 3,520 March 6,730 5,200 April 9,724 8,250 May 5,900 4,900 June 7,336 6,600 Vertise Company uses the high-low method to analyze mixed costs. ...

Other / Other 30 Mar 2016

The Bovise Company has assembled the following data Answer the following questions using the information below: The Bovise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Bovise Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $40,000 3,600 ...

Other / Other 30 Mar 2016

The high-low method 1) When using the high-low method, the two observations used are the high and low observations of the ________. A) cost driver B) fixed cost component C) slope coefficient D) direct cost 2) When using the high-low method, the numerator of the equation that determines the slope is the ________. A) difference between the positive and negative values of dependent and independent variables B) difference betwee ...

Other / Other 30 Mar 2016

The high-low method relies on only two observations 1) Two common forms of quantitative analysis methods of cost estimation are the high-low method and regression analysis. 2) The high-low method relies on only two observations, the highest and lowest, to estimate a linear cost function. 3) The dependent variable is a cost to be predicted and managed, whereas an independent variable or cost driver is the factor used to predict th ...

Other / Other 30 Mar 2016

Patrick Ross, the president of Corise's Wild Game Company Patrick Ross, the president of Corise's Wild Game Company, has asked for information about the cost behavior of manufacturing overhead costs. Specifically, he wants to know how much overhead cost is fixed and how much is variable. The following data are the only records available: Month Machine-hours Overhead Costs February 1,870 $22,500 March 3,080 24,475 April 1,100 24,321 ...

Other / Other 30 Mar 2016

Which cost estimation method is being used by Auric Company At the Auric Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs. Total personnel department costs are $287,500. Department A B C Number of employees 70 280 ...

Other / Other 30 Mar 2016