The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and 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.) Variable cost Fixed cost per call per month

The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and 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.) Variable cost Fixed cost per call per month

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the past year. 50, 000 45,000 UneofBest FIE 40,000 35 000 30,000 25, 000 20,000 15,000 10,000 5000 1,000 2000 3.000 4,000 5,000 6,000 s of Patient-Days Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: O a. $91,000 O b. $66,860 Oc. $63,360 O d. $55,000 Maintenance Department Costs
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Jake's Roof Repair has provided the following data concerning its costs: Cost per Repair-Hour Fixed Cost per Month $ Wages and salaries Parts and supplies Equipment depreciation $ Truck operating expenses $ Rent $ Administrative expenses $ 21,100 2,750 5,780 4,660 3,840 $ 16.00 $ 7.20 $ 0.55 $ 1.70 $ 0.40 For example, wages and salaries should be $21,100 plus $16.00 per repair-hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $48.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Need to make sure my notes coincide with this example problem from video. please include how you calculated each part. Thank you
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour $ Wages and salaries Parts and supplies Equipment depreciation $ Truck operating expenses $ $ Administrative expenses $ Rent 21,200 2,770 5,760 4,680 3,840 $ 15.00 $ 7.80 $ 0.55 $ 1.50 $ 0.70 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 repair-hours. The company expects its sales to be $50.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies $ 21,400 $ 15.00 $ 7.20 Equipment depreciation $ 2,740 $ 0.55 Truck operating expenses Rent $ 5,720 $ 1.70 $ 4,660 $ 3,880 $ 0.70 Administrative expenses For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $47.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net…
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:bre27076_ch06_256-305.indd 292 7/14/09 11:44:37 PMAmount Percent of SalesSales ............................................ $80,000 100%Variable expenses ....................... 32,000 40%Contribution margin ..................... 48,000 60%Fixed expenses ........................... 38,000Net operating income .................. $10,000Required:1. Compute the company’s degree of operating leverage.2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increasein sales.3. Verify your estimate from part (2) above by constructing a new contribution format income statementfor the company assuming a 5% increase in sales.
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below: Machine-Hours Repair Costs April 2,148 $ 33,102 May 2,177 $ 33,120 June 2,134 $ 33,097 July 2,214 $ 33,120 August 2,119 $ 33,030 September 2,230 $ 33,184 October 2,145 $ 33,071 November 2,225 $ 33,157 Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to: Multiple Choice $1.25 per machine-hour plus $30,387 per month $0.80 per machine-hour plus $31,953 per month $0.98 per machine-hour plus $30,978 per month 15.00 per machine-hour plus $33,917 per month