enjamin Inc. produces shoes. The accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. or the past four months were collected as follows: Month April May June July Lease cost $15,000 10,000 12,000 16,000 Machine hours 800 500 770 900 Using the high-low method, calculate the fixed cost of leasing. O $2,500 $5,000 O$13,500 O $7,500

enjamin Inc. produces shoes. The accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. or the past four months were collected as follows: Month April May June July Lease cost $15,000 10,000 12,000 16,000 Machine hours 800 500 770 900 Using the high-low method, calculate the fixed cost of leasing. O $2,500 $5,000 O$13,500 O $7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 2,500 $ 18,400 February 2,900 21,000 March 1,900 13,500 April 3,100 23,000 May 3,800 28,250 June 3,300 22,000 July 4,100 24,750 August 3,500 22,750 September 2,000 15,500 October 3,700 26,000 November 4,700 31,000 December 4,200 27,750 Summary Output Regression Statistics Multiple R 0.965 R Square 0.932 Adjusted R2 0.925 Standard Error 1,425.18 Observations 12.00 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 3,726.88 1,682.82 2.21 0.05 (22.69) 7,476.45 Machine Hours 5.77 0.49 11.7 0.00 4.67 6.87 The percent of the total variance that can be explained by the regression is:…
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