Cost Estimation, Interpretation, and Analysis Kendrick Anderson Furniture Maker, LLC creates custom tables in Atlanta. Assume that the following represents monthly information (also included at this link) on production volume and manufacturing costs since the company started operations. Dining Total Room Tables Manufacturing Month Total Tables Living Room Produced Tables Produced Produced Costs June July 110 4 25 85 $71,000 90 45 45 57,500 August 130 15 115 79,724 September 95 36 59 64,250 October 76 24 52 57,300 November 92 48 44 60,900 December 105 24 81 62,700 January 110 50 60 70,130 February 102 20 82 68,400 March 81 25 56 57,400 April 142 102 40 105,790 May 125 22 103 74,750 June 115 15 100 74,290 July 106 18 88 66,500 August 85 28 57 49,888 September 116 55 61 72,668 October 120 81 39 71,700 November 120 30 90 74,200 December 72 18 54 54,900 Required 自
Cost Estimation, Interpretation, and Analysis Kendrick Anderson Furniture Maker, LLC creates custom tables in Atlanta. Assume that the following represents monthly information (also included at this link) on production volume and manufacturing costs since the company started operations. Dining Total Room Tables Manufacturing Month Total Tables Living Room Produced Tables Produced Produced Costs June July 110 4 25 85 $71,000 90 45 45 57,500 August 130 15 115 79,724 September 95 36 59 64,250 October 76 24 52 57,300 November 92 48 44 60,900 December 105 24 81 62,700 January 110 50 60 70,130 February 102 20 82 68,400 March 81 25 56 57,400 April 142 102 40 105,790 May 125 22 103 74,750 June 115 15 100 74,290 July 106 18 88 66,500 August 85 28 57 49,888 September 116 55 61 72,668 October 120 81 39 71,700 November 120 30 90 74,200 December 72 18 54 54,900 Required 自
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 60P: Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to...
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Question
Use the high-low method to develop a cost estimating equation for total
The answer is Y=$2,556 + $727 x
c. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs Comment on the results comparing them with (a).
Using the image, What is the Cost estimating equation?
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