Titles Printed Press Setup Cost May 27 $ 3,245 June 28 $ 3,278 July 40 $ 3,763 August 22 $ 3,071 September 38 $ 3,682 October 36 $ 3,626 November 37 $ 3,628 December 33 $ 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.)
Titles Printed Press Setup Cost May 27 $ 3,245 June 28 $ 3,278 July 40 $ 3,763 August 22 $ 3,071 September 38 $ 3,682 October 36 $ 3,626 November 37 $ 3,628 December 33 $ 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TB Problem Qu. 6A-71 (Algo) Furlan Printing Corporation, a book printer, has provided the...
Furlan Printing Corporation, a book printer, has provided the following data:
Titles
Press Setup Cost
Printed
May
27
$ 3,245
June
28
$ 3,278
July
40
$ 3,763
August
22
$ 3,071
September
38
$ 3,682
October
36
$ 3,626
November
December
37
$ 3,628
33
$ 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.)
Variable cost
Fixed cost
per title printed
per month
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