Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Chapter 2, Problem 9EB
The cost data for BC Billing Solutions for the year 2020 is as follows:
- Using the high-low method, express the company’s overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800.
- Predict the overtime wages if 9,000 invoices are processed.
- Predict the overtime wages if 6,500 invoices are processed.
- Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
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The cost data for BC Billing Solutions for the year 2020 is as follows:
A. Using the high-low method, express the company’s overtime wages as an equation wherexrepresents number of invoices processed. Assume BC has monthly fixed costs of $3,800.
B. Predict the overtime wages if 9,000 invoices are processed.
D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c.
Click the icon to view the monthly data.
a. Develop a simple linear regression model between billable hours and overhead costs.
Overhead Costs
+(9) x Billable Hours
(Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)
X
Monthly Overhead Costs and Billable Hours Data
Overhead Costs Billable Hours
$315,000
3,000
$360,000
4,000
$385,000
5,000
$438,000
6,000
$520,000
7,000
$540,000
8,000
D
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The managing director of a law firm has the monthly data (below) on total overhea labor hours to bill to clients. Develop a simple linear regression model between bi costs. \table [[\table[[Overhead], [Costs]], \table [[Billable], [Hours
]]], [375000, 3000], [425000, 4000], [445000, 5000], [496000, 6000], [580000, 7000], [605000, 8000]] Round the coefficient to two decimal places, do not include the $ symbol. For ea billable hours, the predicted overhead costs are estimated to increase by 109.12
Chapter 2 Solutions
Principles of Accounting Volume 2
Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Conversion costs include all of the following...Ch. 2 - Which of the following is not considered a product...Ch. 2 - Fixed costs are expenses that...Ch. 2 - Variable costs are expenses that...
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