MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
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Textbook Question
Chapter 2A, Problem 2A.5E
Least-Squares Regression LO2-11
George Caloz ** Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.
Required:
- Prepare a scattegraph plot. (Plot etching costs on the vertical axis and units on the horizontal axis.)
- Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week Express these estimates in the form
- If the company processes five units next week, what would be the expected total etching cost? (Round your answer to the nearest cent.)
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2
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
123456
Units
9
6
11
5
7
14
52
Total Etching
Cost
$ 25
20
30
21
21
32
$ 149
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
Exercise 5A-5 Part 3 (Algo)
3. If the company processes eighteen units pext week, what would be the expected total etching cost? (Round your intermediate
calculations and final answer to 2 decimal places.)
Answer is complete but not entirely correct.
$ 38.00 X
Expected total etching cost
Required information
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
123456
Units
17
11
W3
13
12
14
Reg 2A
47
17
84
Total Etching
Cost
$ 26
20
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
604
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a + bx.
Req 2B
24
22
25
28
$ 145
Complete this question by entering your answers in the tabs below.
Fixed etching cost per week
Variable etching cost per unit
Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per
week. (Round your answers to 2 decimal…
Required information
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Total Etching
Cost
Week
Units
123456
9
$ 27
6
20
11
31
сл
20
7
24
10
30
48
$ 152
For planning purposes, management wants to know the variable etching cost per unit and the total fixed etching cost per
week.
Required:
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a + bx.
3. If the company processes eight units next week, what would be the expected total etching cost?
Complete this question by entering your answers in the tabs below.
Required 2A Required 2B Required 3
Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed…
Chapter 2A Solutions
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- ! Required information George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 2 3 4 5 6 Units 10 4 12 5 10 15 56 Total Etching Cost $ 27 20 27 22 25 29 $ 150 For planning purposes, management wants to know the variable etching cost per unit and the total fixed etching cost per week. Required: 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a +bX. 3. If the company processes thirteen units next week, what would be the expected total etching cost? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Using the least-squares regression method, estimate the variable etching cost per unit and the total…arrow_forwardRequired information George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Total Etching Week Units 1 13 Cost $ 24 2 11 21 3 16 31 4 15 25 5 18 31 6 18 32 91 $ 164 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Required: 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bx. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Express these estimates in the form Y = a + bx. Note: Round your answers to 2 decimal places. Y =arrow_forwardGeorge Caloz & Freres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: ing Cost Week 1 $54 ANAS $45 2 $36 3 4 6 Units 9 6 11 5 7 10 48 For planning purposes, management wants to know the variable etching cost per unit and the total fixed etching cost per week. Required: 1. Prepare a scattergraph plot. (Plot etching costs on the vertical axis and units on the horizontal axis.) Instructions: 1. On the graph below, use the point tool (Week 1) to plot units on the horizontal axis and total etching cost on the vertical axis. 2. Repeat the same process for the plotter tools (Week 2 to Week 6). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. Total Etching Cost $ 27 20 31 20 24 30 $ 152…arrow_forward
- Godoarrow_forwardGeorge Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 ASAWNE 2 3 4 5 Units 12 3 8 8 8 11 50 Total Etching Cost $ 32 20 26 27 25 30 $ 160 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 5A-5 Part 3 (Algo) 3. If the company processes fourteen units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places.) Expected total etching costarrow_forwardLog Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart: a. How much of the total time is value-added time? ______ hours b. How much total time is spent performing non-value-added activities? ______ hours c. Calculate the manufacturing cycle efficiency of the process. Note: Round the percentage to one decimal point (i.e. show 14.445% as 14.4%). ______%arrow_forward
- Please help me fast thankuarrow_forwardHow to work this problarrow_forwardThe production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A $43,529.50 $80,697.00 Machine B Machine C $64,675.95 310,925.00 268,990.00 431,173.00 Estimated average income Average investment Oa. Machine B Ob. Machine A Oc. Machine C Od. Machines B and C have the same preferred average rate of return.arrow_forward
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