Reference no: EM131987019
Problem - BONO Primera Nota
Pedro Padilla, president of Padilla Window and Doors CORP, present the following information about the cost behavior of the manufacturing assembly costs. He want to know and determine how much of the manufacturing assembly cost are fixed and how much variable. Offer the following data asking for your help.
|
Month
|
Machine Hours
|
Assembly Costs
|
|
May
|
1,700
|
$18,000
|
|
June
|
2,600
|
25,000
|
|
July
|
2,000
|
15,800
|
|
August
|
2,500
|
22,800
|
|
September
|
3,500
|
27,000
|
|
October
|
1,800
|
19,100
|
|
November
|
2,850
|
25,250
|
|
December
|
3,600
|
29,200
|
Required:
Regular BONO
1. Using the High - Low method, determine the:
a. Manufacturing assembly variable cost per unit.
b. Manufacturing assembly fixed cost
c. The resulting cost function
d. If 1950 machine hours are expected for January, which is the total cost using the cost function of requirement c.
2. A Least square regression analysis is required. Determine the:
a. Manufacturing assembly variable cost per unit.
b. Manufacturing assembly fixed cost
c. The resulting cost function
d. If 1950 machine hours are expected for january , which is the total cost using the cost function of requirement c.
3. Determine the goodness of fit
a. Square R