Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: Maintenance Machine Health Number of Shipping Costs Units Month Costs Hours Insurance Employees Shipped 7,160 $4,500 $4,452 $4,600 $4,850 $8,600 $8,600 S8,600 $8,600 $8,600 January February March $25,776 $29,664 165 68 120 75 8,240 $28,674 $23,058 $21,294 $3,282 230 92 7,965 April May 318 105 6,405 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4,760 460 89 5,915 $8,600 $8,600 $8,600 $8,6 $8,600 $8,600 $8,600 June 280 87 9,245 340 $31,428 $30,294 $25,110 $25,866 $20,124 $34,596 July August September 93 8,730 8,415 6,975 7,185 5,590 9,610 360 88 420 95 October 495 102 November 510 97 December 275 94

Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: Maintenance Machine Health Number of Shipping Costs Units Month Costs Hours Insurance Employees Shipped 7,160 $4,500 $4,452 $4,600 $4,850 $8,600 $8,600 S8,600 $8,600 $8,600 January February March $25,776 $29,664 165 68 120 75 8,240 $28,674 $23,058 $21,294 $3,282 230 92 7,965 April May 318 105 6,405 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4,760 460 89 5,915 $8,600 $8,600 $8,600 $8,6 $8,600 $8,600 $8,600 June 280 87 9,245 340 $31,428 $30,294 $25,110 $25,866 $20,124 $34,596 July August September 93 8,730 8,415 6,975 7,185 5,590 9,610 360 88 420 95 October 495 102 November 510 97 December 275 94

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Combine the preceding information to get a monthly operating cost function for the Stein Corporation

Stein Corporation wants to find an equation to estimate some of their
monthly operating costs for the operating budget for 2018. The following cost and other data were gathered
for 2017:
Maintenance
Machine
Health
Number of
Shipping
Costs
Units
Month
Costs
Hours
Insurance
Employees
Shipped
7,160
$4,500
$4,452
$4,600
$4,850
$8,600
$8,600
S8,600
$8,600
$8,600
January
February
March
$25,776
$29,664
165
68
120
75
8,240
$28,674
$23,058
$21,294
$3,282
230
92
7,965
April
May
318
105
6,405
$5,166
$4,760
$4,910
$4,960
$5,070
$5,250
$5,271
$4,760
460
89
5,915
$8,600
$8,600
$8,600
$8,6
$8,600
$8,600
$8,600
June
280
87
9,245
340
$31,428
$30,294
$25,110
$25,866
$20,124
$34,596
July
August
September
93
8,730
8,415
6,975
7,185
5,590
9,610
360
88
420
95
October
495
102
November
510
97
December
275
94

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