Question wilkens company wants to evaluate the cost

Assignment Help Financial Accounting

Reference no: EM13350221

Question :

Wilkens Company wants to evaluate the cost behavior pattern of maintenance costs. Wilkens has decided to use linear regression by employing the equation y = a + bx for maintenance costs. The prior year's data regarding maintenance hours and costs, and the results of the regression analysis are provided in the data below.

Hours of Activity Maintenance Costs

January 480 4,200

February 320 3,000

March 400 3,600

April 300 2,820

May 500 4,350

June 310 2,960

July 320 3,030

August 520 4,470

September 490 4,260

October 470 4,050

November 350 3,300

December 340 3,160

Total 4,800 $43,200

Average 400 $ 3,600

Average cost per hour $9.00

A 684.65

b 7.2884

Standard error of a 49.515

Standard error of b 0.12126

Standard error of the estimate 34.469 r 0.99724

a. Refer to the Wilkens Corporation. Based upon the data derived from the regression analysis, evaluate maintenance costs should be budgeted for a month in which 420 maintenance hours may be worked?

b. Determine the percentage of the total variance that will be explained by the regression equation?

Reference no: EM13350221

Questions Cloud

Assessment task critical review the decision making of a : assessment task critical review the decision making of a failed major constructionproperty project within the uk in the

Question independence is taken the cornerstone of the : question independence is taken the cornerstone of the accounting profession. in relation to the audit the auditor could

Question bottle-up inc was organized on 8th january 2001 : question bottle-up inc. was organized on 8th january 2001 and made its s election on 24th january 2000. the required

Question the knott division of wright corporation produces : question the knott division of wright corporation produces rope. one-third of the knott divisions output is sold to

Question wilkens company wants to evaluate the cost : question wilkens company wants to evaluate the cost behavior pattern of maintenance costs. wilkens has decided to use

Question company applies overhead costs to products at a : question company applies overhead costs to products at a rate of 50 of direct labor costs. the subsequent data relate

Question the chinese teapot company manufactures ceramic : question the chinese teapot company manufactures ceramic and plastic teapots. the companys western plant has changed

Problem 1effect of accrued interest on financial : problem 1effect of accrued interest on financial statementsnorman co. borrowed 15000 from the local bank on 1st april

Questionaccounting for sales tax and short-term debt -two : questionaccounting for sales tax and short-term debt -two accounting cyclesthe subsequent transactions apply to artesia

User Account

All Pages