Estimate the variable cost per section

Assignment Help Cost Accounting
Reference no: EM13554852

Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last several terms:

278_Least-squares regression method.PNG

Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes.

Required:

1. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.

2. Express the cost data derived in (1) above in the linear equation form Y = a + bX.

3. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? Explain.

4. Prepare a scattergraph and fit a straight line to the plotted points using the cost formula expressed in (2)above.

Reference no: EM13554852

Questions Cloud

Explain barbecue grills and camp stoves : Propane (C3H8) is widely used in liquid form as a fuel for barbecue grills and camp stoves. For 67.7 g of propane, determine the following.
Determine how many higher orders of maxima can be seen : A grating has 380 rulings/mm and is 6.2 mm wide. How many higher orders of maxima can be seen
How much work is required to stack them : eight bricks, each 6.0 cm thick with mass 1.5 kg lie flat on a table. how much work is required to stack them one on top of another
State concentration of a reaction in a first- order reaction : It takes 24.0 min for the concentration of a reaction in a first- order reaction to drop from 0.35M to 0.25 at 25 degree celsious. How long will it take for the reaction to be 80% complete
Estimate the variable cost per section : Estimate the variable cost per section and the total fixed cost per term for Finance 101 and prepare a scattergraph and fit a straight line to the plotted points using the cost formula expressed.
Find after what time will the dog reach the bone : A merry-go-round is stationary. A dog is running on the ground just outside its circumference, moving with a constant angular speed of0.695rad/s. After what time will the dog reach the bone
Calculate the acceleration the time requited to travel : A train started from rest and moved with constant acceleration. Atone time it was traveling at 54.0 m/s. Calculate (a) the acceleration, (b) the time requited to travel at 160 m, (c) thetime required to attain the speed of 33.0 m/s and (d) the di..
Evaluate the volume of the tank : A tank contains 11.9 g of chlorine gas (Cl2) at a temperature of 81 °C and an absolute pressure of 5.50 105 Pa. The mass per mole of Cl2 is 70.9 g/mol. Determine the volume of the tank
Explain the ring break in methylcyclohexene : Under what reactiong mechanism the ring break in methylcyclohexene to form an open ring with two OH on it. its organic two btw

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare a statement of budgeted costs for working

Prepare a statement of budgeted costs for working out the overhead recovery rates in percentages - work out the lowest quotation for the export order.

  Prepare the necessary journal entries for perez computers

July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Perez uses the gross method to record cash discounts.

  Prepare smithsons statement of cash flows

Prepare Smithsons statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.

  Define some of the challenges that china faces

Cultural Revolution highlights some of the challenges that China faces as it moves towards the adoption of International Accounting Standards. These challenges include, but are not restricted to, societal, cultural and accounting issues.

  Compute the inventory cost

Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions.

  What amount of equity method income would russell recognize

What amount of equity method income would Russell recognize in 2011 from its ownership interest in Thacker and what is the equity method balance in the Investment in Thacker account at the end of 2011?

  What is the cost of materials that must be purchased

Find how many umbrellas must the company produce to meet demand and have sufficient ending inventory and evaluate what is the cost of materials that must be purchased?

  Budgeting process and procedures for the organisation

Assess the budgeting process and procedures for the organisation with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc.

  Evaluate the amount of uncollectible accounts

Identify and analyze the adjustment needed to estimate bad debts. Assume that the balance in Allowance for Doubtful Accounts is $20,000.

  Calculate the initial investments cashflows

Determine the appropriate discount rate to evaluate the project.(round your answer to the nearest percentage.)

  Calculate helenes basis in the land

Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively, Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident in 2013 while returning from a sporting event.

  Evaluate estimated cost of each of the toppings lost

Evaluate the estimated cost of each of the toppings lost in the fire. What factors could cause the estimates to be over- or understated?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd