The following information is available regarding the total repair costs of Alexander Design Company for six months of 2022: Units Produced Repair Cost January 1,500 $15,875 February 1,750 $16,500 March 1,000 $11,250 April 1,250 $15,250 May 1,875 $17,750 June 2,250 $20,250 Using the least-square regression analysis on Excel, construct a cost formula. Run a regression analysis on the data above and provide your response to the following three questions. Round decimals to the nearest tenth (i.e, two decimal points). (1) Provide the regression output and construct a cost model. (2) According to the cost model, what is the estimated total fixed cost? (3) According to the cost model, what is the estimated variable cost per unit?
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2022: Units Produced Repair Cost January 1,500 $15,875 February 1,750 $16,500 March 1,000 $11,250 April 1,250 $15,250 May 1,875 $17,750 June 2,250 $20,250 Using the least-square regression analysis on Excel, construct a cost formula. Run a regression analysis on the data above and provide your response to the following three questions. Round decimals to the nearest tenth (i.e, two decimal points). (1) Provide the regression output and construct a cost model. (2) According to the cost model, what is the estimated total fixed cost? (3) According to the cost model, what is the estimated variable cost per unit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available regarding the total repair costs of Alexander Design Company for six months of 2022:
| Units Produced | Repair Cost | |
| January | 1,500 | $15,875 |
| February | 1,750 | $16,500 |
| March | 1,000 | $11,250 |
| April | 1,250 | $15,250 |
| May | 1,875 | $17,750 |
| June | 2,250 | $20,250 |
Using the least-square regression analysis on Excel, construct a cost formula. Run a regression analysis on the data above and provide your response to the following three questions. Round decimals to the nearest tenth (i.e, two decimal points).
(1) Provide the regression output and construct a cost model.
(2) According to the cost model, what is the estimated total fixed cost?
(3) According to the cost model, what is the estimated variable cost per unit?
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