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 $ 165,400 1 2 3 4 5 6 7 1,500 4,400 2,800 2,300 1,200 2,000 100,750 241,400 163,800 139,550 86,200 125,000 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. $ 28,000 ✔+$48.5 ✓X (b.) Plot the data on a scatter diagram. Hint: In Excel, highlight the data to be included in the chart. Open the insert tab and select the Scatter chart in the Charts group. Using the information from representative high- and low volume months, develop a cost-estimating equation for monthly order-processing costs. $ 47.864 * +$ 28,405 x x

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 $ 165,400 1 2 3 4 5 6 7 1,500 4,400 2,800 2,300 1,200 2,000 100,750 241,400 163,800 139,550 86,200 125,000 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. $ 28,000 ✔+$48.5 ✓X (b.) Plot the data on a scatter diagram. Hint: In Excel, highlight the data to be included in the chart. Open the insert tab and select the Scatter chart in the Charts group. Using the information from representative high- and low volume months, develop a cost-estimating equation for monthly order-processing costs. $ 47.864 * +$ 28,405 x x

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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