17E MANAGERIAL ACCOUNTING CUSTOM
17th Edition
ISBN: 9781266776328
Author: Garrison
Publisher: MCG
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Chapter 5.A, Problem 5E
EXERCISE 5A-5 Least-Squares Regression LO5-11
George 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:
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 scattergraph 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 Y= a+bX.
- 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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Exercise 5A-5 (Algo) Least - Squares Regression [LO5-11] Skip to question 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 Units Total
Etching Cost 1 6 $ 21 2 7 23 3 11 28 4 12 27 5 13 28 6 14 29 63 $ 156 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 fifteen units next week, what would be the expected total etching cost? (Round your intermediate
calculations and final answer to 2 decimal places.)
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…
Question 16
Direct Labor
Order Allocation Rate
Machine Time Allocation Rate
Request
(Easy-Medium) Use the information below to answer the questions that follow.
$
$
$
38.00 per hour
46.55 $ of OH / order
2.83 $ of OH / machine hour
Place the answer to each part of the question in the box provided.
Under job costing, how much overhead will be applied to a unit that takes 0.5 hours to produce and is part of an order for 100 units?
Under job costing, how much overhead will be applied to a unit that takes 2 hours to produce and is part of an order for 10 units?
What is the total cost of the first product if materials are $2.50 and a person must be present to run the machines?
What is the total cost of the second product if materials are $1 and a person must be present to run the machines for half the total time?
Chapter 5 Solutions
17E MANAGERIAL ACCOUNTING CUSTOM
Ch. 5.A - EXERCISE 5A-1 High-Low Method LO5-10 The Cheyenne...Ch. 5.A - EXERCISE 5A-2 Least-Squares Regression LO5-11...Ch. 5.A - EXERCISE 5A-3 Cost Behavior; High-Low Method...Ch. 5.A - Prob. 4ECh. 5.A - EXERCISE 5A-5 Least-Squares Regression LO5-11...Ch. 5.A - Prob. 6PCh. 5.A - Problem 5A-7 Cost Behavior; High-Low Method;...Ch. 5.A - Problem 5A-8 High-Low Method; Predicting Cost...Ch. 5.A - Prob. 9PCh. 5.A - Prob. 10P
Ch. 5.A - Case 5A-11 Mixed Cost Analysis and the Relevant...Ch. 5.A - CASE 5A-12 Analysis of Mixed Costs in a Pricing...Ch. 5 - Prob. 1QCh. 5 - Often the most direct route to a business decision...Ch. 5 - Prob. 3QCh. 5 - What is the meaning of operating leverage?Ch. 5 - What is the meaning of break-even point?Ch. 5 - 5-6 In response to a request from your immediate...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 1AECh. 5 - Prob. 2AECh. 5 - Prob. 3AECh. 5 - Prob. 4AECh. 5 - Prob. 5AECh. 5 - Prob. 1F15Ch. 5 - Prob. 2F15Ch. 5 - Prob. 3F15Ch. 5 - Prob. 4F15Ch. 5 - Prob. 5F15Ch. 5 - Prob. 6F15Ch. 5 - Prob. 7F15Ch. 5 - Prob. 8F15Ch. 5 - Prob. 9F15Ch. 5 - Prob. 10F15Ch. 5 - Prob. 11F15Ch. 5 - Prob. 12F15Ch. 5 - Prob. 13F15Ch. 5 - Prob. 14F15Ch. 5 - Prob. 15F15Ch. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - EXERCISE 5-10 Multiproduct Break-Even Analysis...Ch. 5 - Prob. 11ECh. 5 - EXERCISE 5-12 Multiproduct Break-Even Analysis...Ch. 5 - EXERCISE 5-13 Changes in Selling Price, Sales...Ch. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19PCh. 5 - PROBLEM 5-20 CVP Applications: Break-Even...Ch. 5 - PROBLEM 5-21 Sales Mix; Multiproduct Break-Even...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 -
PROBLEM 5-26 CVP Applications; Break-Even...Ch. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 -
PROBLEM 5-31 Interpretive Questions on the CVP...Ch. 5 - Prob. 32C
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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 Units 7 2 30 Total Etching Cost $18 17 25 20 24 Expected total etching cost 16 $120 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. 3. If the company processes five units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places.)arrow_forwardSh9 Please help mearrow_forwardsssssarrow_forward
- 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…arrow_forwardRequired Information Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] 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: Week 1 2 3 4 5 Units 9 5 11 5 8 11 49 Total Etching Cost $ 24 21 29 20 24 27 $ 145 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 nine 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_forwardRequired information Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] 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: Week 123456 Units 9 6 11 5 7 10 48 Req 2A For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Total Etching Cost $ 27 20 31 20 Exercise 5A-5 Part 2 (Algo) 24 30 $ 152 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 Complete this question by entering your answers in the tabs below. Fixed etching cost per week Variable etching cost per unit X Answer is complete but not entirely correct. Using the least-squares regression method,…arrow_forward
- Required information Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] 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: Week 1 2 3 4 5 6 Units 13 11 16 15 18 18 91 Total Etching Cost $ 24 21 31 25 31 32 $ 164 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Expected total etching cost Exercise 5A-5 Part 3 (Algo) 3. If the company processes twenty units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places.)arrow_forwardQuestion 5 A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine Cost A 75000 45000 55000 Product forecasts and processing times on the machines are as follows: Processing Time Per Unit (minutes) Annual Machine Machine Machine Product Demand A B C 20000 9. 2 25000 4 5 10 8000 10 6. 4 46000 2 8 9. a) all 4 products. Machines operate 10 hours a day, 300 days a year. Calculate how many of each type of machine would be required to satisfy the demand for b) Assume that only purchasing costs are being considered. Which machine would have the lowest total cost? c) Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $7 each, B machines have an hourly operating cost of $12 each, and C machines have an hourly operating cost of $10 each. Assume that the machines will be used only for one year. Which machine will have the lowest total cost (purchasing cost +…arrow_forwardQuestion 8 XAE-2 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided: Not yet answered Marked out of - 1.00 P Flag question Activity Usage Measures Model MX10 Model DX20 Total Units produced annually 15,000 40,000 55,000 Prime costs $40,000 $100,000 $140,000 Machine hours 40,000 60,000 100,000 Production runs 14 20 Direct labor hours 20,000 30,000 50,000 The company primarily has thr.ee major activities as follows in the production process: Activity Activity Cost Setups $50,000 Inspections $30,000 Power $15,000 Calculate the unit cost of model DX 20. O a. $4.05 35°C Rair O Type here to searcharrow_forward
- Pls help questions 11-15arrow_forwardU Required information Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] 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: Week 1 123456 2 3 4 5 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 2 (Algo) 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.arrow_forward9arrow_forward
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