cost equation for the quarterly data by using the high low method. Given information: Highest maintenance cost value is $280,000. Highest machinery hours are 140,000. Lower maintenance cost value is $190,000. Lower machinery hours are 95,000.

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Answer 1

Question

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

2.

To determine

To construct: The graph of the of the cost faction and comment on that

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

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KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

Accounting Question

REQUIRED Study the information given below and answer the following questions. Where discount factors are required use only the four decimals present value tables that appear after the formula sheet or in the module guide. Ignore taxes. 5.1 Calculate the Accounting Rate of Return on average investment of the second alternative (expressed to two decimal places). 5.2 Determine which of the two investment opportunities the company should choose by calculating the Net Present Value of each alternative. Your answer must include the calculation of the present values and NPV. 5.3 Calculate the Internal Rate of Return of the first alterative (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The management of Bentall Incorporated is considering two investment opportunities: (5 marks) (9 marks) (6 marks) The first alternative involves the purchase of a new machine for R900 000 which…

Answer 2

Question

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

2.

To determine

To construct: The graph of the of the cost faction and comment on that

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

2.

To determine

To construct: The graph of the of the cost faction and comment on that

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

2.

To determine

To construct: The graph of the of the cost faction and comment on that

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

2.

To determine

To construct: The graph of the of the cost faction and comment on that

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Answer 6

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

Answer 7

Chapter 10, Problem 10.30E

1.

To determine

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

Answer 8

2.

To determine

To construct: The graph of the of the cost faction and comment on that

Answer 9

2.

To determine

To construct: The graph of the of the cost faction and comment on that

Answer 10

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Answer 11

3

To determine

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 10 - What two assumptions are frequently made when...Ch. 10 - Describe three alternative linear cost functions.Ch. 10 - What is the difference between a linear and a...Ch. 10 - High correlation between two variables means that...Ch. 10 - Name four approaches to estimating a cost...Ch. 10 - Describe the conference method for estimating a...Ch. 10 - Describe the account analysis method for...Ch. 10 - List the six steps in estimating a cost function...Ch. 10 - When using the high-low method, should you base...Ch. 10 - Describe three criteria for evaluating cost...

cost equation for the quarterly data by using the high low method. Given information: Highest maintenance cost value is $280,000. Highest machinery hours are 140,000. Lower maintenance cost value is $190,000. Lower machinery hours are 95,000.

cost equation for the quarterly data by using the high low method. Given information: Highest maintenance cost value is $280,000. Highest machinery hours are 140,000. Lower maintenance cost value is $190,000. Lower machinery hours are 95,000.

To construct: The graph of the of the cost faction and comment on that

Regression analysis: Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable. Predicted maintenance cost in quarter 13 Given information: Slope coefficient is $2. Intercept coefficient is $0.

Want to see the full answer?

Chapter 10 Solutions

cost equation for the quarterly data by using the high low method.

Given information:

Highest maintenance cost value is $280,000.

Highest machinery hours are 140,000.

Lower maintenance cost value is $190,000.

Lower machinery hours are 95,000.

Regression analysis:

Regression analysis is that term which is used to understand the relationship between the independent variable and the dependent variable.

Predicted maintenance cost in quarter 13

Given information:

Slope coefficient is $2.

Intercept coefficient is $0.