Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers. Labor hours used in maintenance. Numbers of students enrolled. Month Total Maintenance Cost Number of hours Number of students 1 16,690 238 534 2 13,560 194 532 3 13,540 108 534 4 16,060 229 530 5 12,430 101 533 6 20,860 298 537 7 18,240 244 540 8 12,310 98 540 9 13,770 108 541 10 16,990 225 538 11 20,650 289 540 12 14,770 118 539 Next Semester 1 2 3 4 5 6 TOTAL Required: Prepare a Regression Analysis to determine the Cost Function. Assume that the number of students for the first semester for the next year is: 550, 575, 600, 635, 640 and 670 The numbers of hours is: 210, 225, 230, 245, 250 and 260 Determine the Total Cost for each month for the next year.
Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers. Labor hours used in maintenance. Numbers of students enrolled. Month Total Maintenance Cost Number of hours Number of students 1 16,690 238 534 2 13,560 194 532 3 13,540 108 534 4 16,060 229 530 5 12,430 101 533 6 20,860 298 537 7 18,240 244 540 8 12,310 98 540 9 13,770 108 541 10 16,990 225 538 11 20,650 289 540 12 14,770 118 539 Next Semester 1 2 3 4 5 6 TOTAL Required: Prepare a Regression Analysis to determine the Cost Function. Assume that the number of students for the first semester for the next year is: 550, 575, 600, 635, 640 and 670 The numbers of hours is: 210, 225, 230, 245, 250 and 260 Determine the Total Cost for each month for the next year.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers.
- Labor hours used in maintenance.
- Numbers of students enrolled.
Month |
Total Maintenance Cost |
Number of hours |
Number of students |
1 |
16,690 |
238 |
534 |
2 |
13,560 |
194 |
532 |
3 |
13,540 |
108 |
534 |
4 |
16,060 |
229 |
530 |
5 |
12,430 |
101 |
533 |
6 |
20,860 |
298 |
537 |
7 |
18,240 |
244 |
540 |
8 |
12,310 |
98 |
540 |
9 |
13,770 |
108 |
541 |
10 |
16,990 |
225 |
538 |
11 |
20,650 |
289 |
540 |
12 |
14,770 |
118 |
539 |
Next Semester |
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4 |
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5 |
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6 |
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TOTAL |
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Required:
- Prepare a Regression Analysis to determine the Cost Function.
- Assume that the number of students for the first semester for the next year is:
550, 575, 600, 635, 640 and 670
- The numbers of hours is:
210, 225, 230, 245, 250 and 260
Determine the Total Cost for each month for the next year.
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