The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7. P1,590 11 P1,920 15 P2.100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to (nearest peso) e.g. 1405.688888, Type 1406

The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7. P1,590 11 P1,920 15 P2.100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to (nearest peso) e.g. 1405.688888, Type 1406

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Using the least-squares method of analyzing costs, answer the following questions and show…

A: As per our protocol we provide solution to only 3 sub-parts under a single question. Kindly re-post…

Q: 5. The unit variable cost is $6.43, unit selling price is $10, total fixed costs are $638.03, and…

A: Net income is calculated by subtracting fixed cost and variable cost from revenue. Contribution…

Q: Using the high-low method, the cost formula for utility cost is

A: As per high low method, Fixed costs and variable costs are calculated by taking data of lowest units…

Q: How do I find the contribution margin per unit when the maximum capacity with present facilities =…

A: The contribution margin can be calculated by deducting the variable cost per unit from sales price…

Q: Complete the table below for contribution margin per unit, total contribution margin, and…

A: Contribution margin per unit is the difference between selling price per unit and variable cost per…

Q: a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the…

A: High-low method: The high-low method considers only two data points, that is, the highest point and…

Q: Solve for the cost line equation using the high-low method: \table[[Month, Units Produced,Total…

A: Units producedTotal costHigh1200056000 Low450038000 Change750018000 Variable cost per unit…

Q: Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: An analyst built the following spreadsheet, complete with named ranges (for example, cell B2 is…

A: The following are the values that should appear in the cells accordingly.

Q: You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your…

Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per…

A: Absorption costing method is the method of costing in which product cost is calculated by adding…

Q: JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller…

A: Variable costs are costs that varies with the change in the level of output. Fixed costs are costs…

Question

The following activity and cost data that were provided by Hoist Corporation
would help in estimating its future maintenance costs:
Units
Maintenance cost
P1,350
7.
P1,590
11
P1,920
15
P2.100
Using the
least squares regression method to estimates the cost formula, the expected total
cost for an activity level of 10 units would be closest to (nearest peso)
e.g. 1405.688888, Type 1406
3.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X
Your boss would like you to estimate the fixed and variable components of a particular cost Actual data for this cost over four recent periods appear below. Activity Cost Period 1 22 235 Period 2 23 243 Period 3 25 255 Period 4 20 227 Using the least-squares regression method, what is the cost formula for this cost? Y = P107.45 + P5.89X O Y = P0.00 + P10.67X O Y = P111.92 + P5.69X O Y = P120.81 + P3.56X
Choose the correct letter of answer On a scattergrap, the diagonal line cuts across two sets of observations, namely: 600:200, and 900:500 which refer to costs and units, respectively. The fixed costs is plotted in the graph at P400. In this case, the variable cost per unit is equal to: a. P1.00b. P1.25c. P1.50d. P1.12
Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
Given the following information, choose the cost and activity that would be used as the high data point in high-low cost estimation: Costs (P) Activity (hours) 48 000 41 500 49 000 42 000 57 000 42 500 56 000 43 000 55 000 43 500 O P57 000 and 43 500 hours O P55 000 and 43 000 hours O P55 000 and 42 500 hours O P55 000 and 43 500 hours O P57 000 and 42 500 hours O P56 000 and 43 500 hours
The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
Which of the following costs would be classified as variable and which would beclassified as fixed, if units produced is the activity base? a. Direct materials costs b.Electricity costs of $0.35 per kilowatt-hour
Almed Products has determined that the number of machine hours worked (MH) drives the amount of manufacturing overhead incurred (MOH). On the basis of this relationship, a staff analyst has constructed the following regression equation: MOH = 240,000 + 8MH Which of the choices correctly depicts the nature of Almed’s variables? Dependent Independent A. MOH MOH B. MOH MH C. MH MOH D. MH MH E. 8 240,000 Multiple Choice Choice A Choice B Choice C Choice D Choice E
Determine fixed and variable costs using the high-low method and prepare graph. E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 Instructions a. Determine the fixed and variable cost components using the high-low method. b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 cost increments.
A company has developed a production cost equation for its lone product: Y = 30 + 5X, where X is based on the number of labor hours. Assuming a relevant range of 10 to 20 labor hours, what is the estimated production cost at zero (0) labor hour? a. P 30 b. P 80 c. P130 d. The exact amount cannot be determined without additional information
1. (Give workings for your answer) The following data pertains to activity and utility cost for two recent periods: Activity level (units) 8,000 5,000 Utility cost $8,000 $6,500 Utility cost is a mixed cost with both fixed and variable components. Using the high-lowmethod, the cost formula for utility cost is:A. Y = $1.00 XB. Y = $1.25 XC. Y = $4,000 + $0.50 XD. Y = $1,500 + $1.25 X
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:Units Produced Total Costs80,000 $25,200,00099,000 25,220,000130,000 31,770,000a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.