Estimate the labor cost, Managerial Accounting

Assignment Help:

The Knapp Company needs to predict the labor cost in producing small carrot patch dolls. The following production information is available:

Year

Dolls Produced

Labor Hours

Labor Dollars

2005

1,150

 850

$17,000 

2006

1,600

 975

23,400

2007

1,100

 800

25,600

2008

2,100

1,150 

36,800

2009

1,500

 950

34,200

2010

1,300

 875

35,000

The technology has not changed since 2005. Wage rates have steadily increased since 2005; however, management expects no further wage increases in 2011.

Required:

  1. Select the appropriate independent variable for predicting labor cost. Explain the reason for your selection.
  2. Develop an equation to predict for 2011 the labor cost of producing carrot patch dolls. Use the high-low method.
  3. Estimate the labor cost of producing 3000 carrot patch dolls for 2011 if 3,000 dolls are expected to produce.

Related Discussions:- Estimate the labor cost

What is the significance of performance budgeting, Significance of performa...

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

Manufacturing cost, what are the different arguments against direct materia...

what are the different arguments against direct materials, direct labor, and factory overhead

Explain about intra company transfer pricing, Intra company transfer pricin...

Intra company transfer pricing A company engaged in production may have several segments division or departments doing production jobs or manufacturing party or fully finished

Special orders, Issa Company manufactures a personal computer designed for ...

Issa Company manufactures a personal computer designed for use in schools and markets it under its own label. Issa has the capacity to produce 25000 units a year but is currently p

Cost-volume-profit assumptions, Cost-Volume-Profit assumptions The main...

Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba

What is production cost, What is Production cost It begins with the sup...

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

Coefficient of determination, Coefficient of Determination (r 2 ) If th...

Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l

Show the pricing during market growth, Q. Show the Pricing during market gr...

Q. Show the Pricing during market growth? Pricing during market growth: in the growth stage there is steep rise in the turnover of the company. As prices of new competitors

Describe the method of drawing a break even chart, Describe the method of d...

Describe the method of drawing a break even chart. 1) volume of production/output or sales is plotted on horizontal axis , i. e y - axis . the volume of sales or production ma

Write Your Message!

Captcha
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