The costs of a book printer for the last several months are as follows: Press Setup Cost May June July August September October November December Titles Printed 27 $3,245 28 $3,278 40 $3,763 22 $3,071 38 $3,682 36 $3,626 Variable cost Fixed cost 37 33 $3,629 $3,520 Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.) Required: Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) per title printed per month

The costs of a book printer for the last several months are as follows: Press Setup Cost May June July August September October November December Titles Printed 27 $3,245 28 $3,278 40 $3,763 22 $3,071 38 $3,682 36 $3,626 Variable cost Fixed cost 37 33 $3,629 $3,520 Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.) Required: Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) per title printed per month

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

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

The costs of a book printer for the last several months are as follows:
Press
Setup
Cost
May
June
July
August
September
October
November
December
Titles
Printed
27 $3,245
26 $3,278
40 $3,763
Variable cost
Fixed cost
22
38
36
37
33
$3,071
$3,602
$3,626
53,620
$3,520
Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to
be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the
presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.)
Required:
Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method. (Round the
"Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.)
per ttle printed
per month

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