(a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 8,400 ✔+$14.55 ✓ X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram
(a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 8,400 ✔+$14.55 ✓ X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
MN.45.
Transcribed Image Text:Scatter Diagrams and High-Low Cost Estimation
Assume
the local Pearle Vision has the following information on the number of sales orders received and order-processing costs.
Month Sales Orders Order-Processing Costs
3,000
$ 49,620
30,225
72,420
49,140
41,865
1
2
3
4
5
6
7
1,500
4,400
2,800
2,300
1,200
2,000
25,860
37,500
NOTE: Round variable cost per unit answers to two decimal places, if appropriate.
(a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs.
$ 8,400 ✔ + $ 14.55
✔ X
(b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel
worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram
$ 8,521.4
X+$14.359
X X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education