Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm'scontroller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior patternof the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of anequation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last yearare as follows:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotalAverageHours ofMaintenanceService5604802804703504603204304903803503404,910409Maintenance costMaintenanceCosts$ 5,1104,2402,7304,3003,0304, 1203,0003,5904,0003,2203,1703,070$ 43,580$ 3,632PR 6-38 (Algo) Part 3 Compute the predicted maintenance cost...3. Compute the predicted maintenance cost at 670 hours of activity.Answer is complete but not entirely correct.$49,192 X

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The fi controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost beh of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use c equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs fo are as follows: Month January February March April May June July August September October November December Total Hours of Maintenance Service 560 480 280 470 350 460 320 430 490 380 350 340 4,910 Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 3,000 3,590 4,000 3,220 3,170 3,070 $ 43,580

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The fi controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost beh of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use c equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs fo are as follows: Month January February March April May June July August September October November December Total Hours of Maintenance Service 560 480 280 470 350 460 320 430 490 380 350 340 4,910 Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 3,000 3,590 4,000 3,220 3,170 3,070 $ 43,580

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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