CH10 COST ASS

xlsx

School

Southern Utah University *

*We aren’t endorsed by this school

Course

2500

Subject

Statistics

Date

Jan 9, 2024

Type

xlsx

Pages

Uploaded by HighnessMorningFly10

10.38 Week Inspected Costs SUMMARY OUTPUT 1 254 1,740 2 322 2,500 Regression Statistics 3 335 2,250 Multiple R 0.9675953 4 431 2,800 R Square 0.9362406 5 198 1,400 Adjusted R 0.925614 6 239 1,690 Standard E129.71345 7 252 1,720 Observatio 8 8 325 2,200 ANOVA df SS MS Regression 1 1482396.532 1482396.532 Residual 6 100953.4684 16825.57807 Total 7 1583350 CoefficientsStandard Error t Stat Intercept 193.19356 201.7689406 0.957498982 Inspected 6.2625007 0.667191626 9.386359808 Inspection Inspection SUMMARY OUTPUT Week Labor Hours Costs 1 66 1,740 Regression Statistics 2 110 2,500 Multiple R 0.763547 3 82 2,250 R Square 0.583004 4 123 2,800 Adjusted R 0.513505 5 48 1,400 Standard E 331.7254 6 62 1,690 Observatio 8 7 108 1,720 7 127 2,200 ANOVA df SS MS F Regression 1 923099.37 923099.3677 8.388626887 Residual 6 660250.63 110041.7721

Total 7 1583350 Coefficients tandard Erro t Stat P-value Intercept 944.665 395.12677 2.390789623 0.053968113 Labor Hour 12.04226 4.1577898 2.896312636 0.027466293 Explain why rooms inspected and inspection labor-hours are plausible cost drivers of inspection costs. Both the cost drivers are possible. Based on the presented regression analysis, both rooms examined and inspection labor-hours are trustworthy cost drivers of inspection expenses. Both factors have significant R-squared values and low p-values, indicating that they have a statistically significant influence on inspection costs, and their coefficients imply a positive connection with inspection costs. Plot the data and regression line for rooms inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain. After anaylyzing the scatter plot I can say that the r-square and the t statistic value suggest units have a better cost driver than rooms inspected Adams expects inspectors to inspect 300 rooms and work for 105 hours next week. Using the cost driver you chose in requirement 2, what amount of inspection costs should Adams budget? Explain any implications of Adams choosing the cost driver you did not choose in requirement 2 to budget inspection costs. If Adams uses labor hours to predict inspection costs, his cost estimate will be overstated. If the actual costs are below this estimate, then he may wrongly conclude the inspection process is efficient when it actually may not be.

y=6.2625x+193.19 R2=0.9362 300 2071.94375363776 F Significance F 88.1037504411 8.30138368E-05 P-value Lower 95% Upper 95%Lower 95.0% Upper 95.0% 0.37528982068 -300.51725678 686.90437 -300.5173 686.90437 8.30138368E-05 4.62994156502 7.8950598 4.6299416 7.8950598 y=12.042x+944.66 R2=0.583 105 2209.10219150106 Significance F 0.02746629349

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Lower 95% Upper 95% Lower 95.0% Upper 95.0% -22.1753950024 1911.50537694 -22.1754 1911.5054 1.8685139872 22.2160041182 1.868514 22.216004

150 200 250 300 350 400 450 - 500 1,000 1,500 2,000 2,500 3,000 f(x) = 6.26250066141066 x + 193.193555214562 R² = 0.936240585822791 Costs 40 50 60 70 80 90 100 110 120 130 140 - 500 1,000 1,500 2,000 2,500 3,000 f(x) = 12.042259052706 x + 944.664990966931 R² = 0.583003990074954 Costs

40 50 60 70 80 90 100 110 120 130 140

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

10.4 Learning= $ 0.90 New units= Cum average Total Total units= Ttime per unit Time b = ln(learning rate)/ln(2) = $ 1.00 $ 15,200 $ 15,200 y=a*xb $ 2.00 $ 13,680 $ 27,360 Total time for $ 4.00 $ 12,312 $ 49,248 Less time for $ 8.00 $ 11,081 $ 88,646 Time for units 2 through 7 $ 16.00 $ 9,973 $ 159,564 Learning No learning Difference Rates $ 1,230,000 $ 1,230,000 - 205000 $ 2,878,022 $ 4,104,000 $ (1,225,978) 45 $ 1,343,077 $ 1,915,200 $ (572,122.96) 21 $ 719,506 $ 1,026,000 $ (306,494) 25% $ 6,170,605 $ 8,275,200 $ (2,104,595) Cum Average Model Cum avg/unit Total x y xy 1 $ 15,200 $ 15,200 2 $ 13,680 $ 27,360 3 $ 12,862 $ 38,587 4 $ 12,312 $ 49,248 5 $ 11,901 $ 59,507 6 $ 11,576 $ 69,457 7 $ 11,308 $ 79,156 8 $ 11,081 $ 88,646 9 $ 10,884 $ 97,958 10 $ 10,711 $ 107,113 11 $ 10,557 $ 116,129 12 $ 10,418 $ 125,022 13 $ 10,292 $ 133,802 14 $ 10,177 $ 142,481 15 $ 10,071 $ 151,066 16 $ 9,973 $ 159,564 Cum Average Model

0 2 4 6 8 10 12 14 16 18 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Cum Average Model y xy

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

6 7 -0.152003093 11308.01 hours per unit $ 7.00 units 79156.05 hours 1st unit 15200.00 hours 63956.05 hours per unit per hour per hour x Direct Labor Cost

Number of Med Supply Mon Procedures Costs 1 320 $ 106,000 2 500 $ 230,000 3 240 $ 84,000 4 520 $ 238,000 5 240 $ 193,000 6 340 $ 180,000 7 420 $ 210,000 8 360 $ 92,000 9 320 $ 222,000 10 180 $ 78,000 11 440 $ 127,000 12 380 $ 225,000 Number of Med Supply Mon Patient Hrs Costs 1 2000 $ 106,000 2 3900 $ 230,000 3 1900 $ 84,000 4 4100 $ 238,000 5 3400 $ 193,000 6 3700 $ 180,000 7 3100 $ 210,000 8 1200 $ 92,000 9 3000 $ 222,000 10 1300 $ 78,000 11 2800 $ 127,000 12 3800 $ 225,000 Number of Number of Med Supply ProceduresPatient Hrs Mon Procedures Patient Hrs Costs Procedures 1 1 320 2000 $ 106,000 Patient Hrs 0.610 1 2 500 3900 $ 230,000 3 240 1900 $ 84,000 4 520 4100 $ 238,000 5 240 3400 $ 193,000 6 340 3700 $ 180,000 150 200 250 300 350 400 $- $50,000 $100,000 $150,000 $200,000 $250,000 f(x) = 361.906744379684 x + 36939.772411879 R² = 0.358983695651907 Costs 1000 1500 2000 2500 3000 $- $50,000 $100,000 $150,000 $200,000 $250,000 f(x) = 56.758530183727 x + 3654.85564304465 R² = 0.840324208304851 Costs

7 420 3100 $ 210,000 8 360 1200 $ 92,000 9 320 3000 $ 222,000 10 180 1300 $ 78,000 11 440 2800 $ 127,000 12 380 3800 $ 225,000 10.42.4 Julie should use patinet hours because it has a bigger r-square and t statistics. 10.43.3 There is almost no potential or little potential for multi-colinearity because the correlation coefficient is less than 0.7 10.43.4 The cost equation with patient hours is better at predicting than the other question because the r square and the t statistics are greater (bigger).

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

SUMMARY OUTPUT Regression Statistics Multiple R 0.5991524811 R Square 0.3589836957 Adjusted R Square 0.2948820652 Standard Error 52998.716987 Observations 12 Coefficients Standard Error t Stat Intercept 36939.772412 56404.8595929 0.6549041 Procedures 361.90674438 152.93040986 2.3664799 SUMMARY OUTPUT Regression Statistics Multiple R 0.9166919921 R Square 0.8403242083 Adjusted R Square 0.8243566291 Standard Error 26451.50319 Observations 12 Coefficients Standard Error t Stat Intercept 3654.855643 23569.5102743 0.1550671 Patient Hrs 56.758530184 7.82397117976 7.2544401 s SUMMARY OUTPUT Regression Statistics Multiple R 0.918 R Square 0.843 Adjusted R Square 0.808 Standard Error 27,661.794 Observations 12 450 500 550 3500 4000 4500

ANOVA df SS MS F Regression 1 36822096457 36822096456.7 52.626901 Residual 10 6996820210 699682020.997 Total 11 43818916667 Coefficients Standard Error t Stat P-value Intercept (3,103.757) 30,406.539 (0.102) 0.921 Procedures 38.245 100.756 0.380 0.713 Patient Hrs 54.366 10.328 5.264 0.001