14. Division S produces a small motor that can be used in Division B's final blender product. B has been purchasing the motor from Co. O for $84/unit. Division S's manager has approached the manager of Division B about selling these motors to Division B. Division S incurs these unit costs: Direct materials $16, Direct labor $8, Variable overhead $6, Fixed overhead $24 Currently, Division S can produce 150,000 motors but is only producing 120,000. Div. B needs 20,000 units per year. The maximum transfer price should be: a. $30 c. $84 b. $$54 d. $24 18. Refer to question 14. If S is at full capacity, the transfer price should be: a. Between $30 and 584 c. $30 b. 584 d. $54 19. Time-series forecasting may be used to predict future values of a variable by: a. A simple moving average c. Exponential smoothing b. A weighted moving average d. All of the above 20. Given the following data: Period: 1 #sold: 33 The estimate of the number sold for the 9th period using a simple moving average and k = 4 is: a. 34.75 c. 39 b. 36.50 d. 35.46 21. Excel's Solver is used in a time-series weighted moving average problem to: a. Predict estimates for more than one period into the future c. Maximize the MSE b. Minimize the mean square error (MSE) d. None of the above 22. Regarding regression analysis involving only one independent variable: a. The best method for solving is a visual fit of a line to the data; b. The best method for solving requires a "hyperplane" fit to the data. c. The least squares method is mathematically the best way to apply it; d. The dependent variable is used to predict the value of the independent variable. 23. The least squares method is based upon: a. Minimizing the unexplained variation. b. Maximizing the unexplained variation. c. Minimizing the explained variation. d. Maximizing the total variation. 14. Division S produces a small motor that can be used in Division B's final blender product. B has been purchasing the motor from Co. O for $84/unit. Division S's manager has approached the manager of Division B about selling these motors to Division B. Division S incurs these unit costs: Direct materials $16, Direct labor $8, Variable overhead $6, Fixed overhead $24 Currently, Division S can produce 150,000 motors but is only producing 120,000. Div. B needs 20,000 units per year. The maximum transfer price should be: a. $30 c. $84 b. $$54 d. $24 18. Refer to question 14. If S is at full capacity, the transfer price should be: a. Between $30 and 584 c. $30 b. 584 d. $54 19. Time-series forecasting may be used to predict future values of a variable by: a. A simple moving average c. Exponential smoothing b. A weighted moving average d. All of the above 20. Given the following data: Period: 1 #sold: 33 The estimate of the number sold for the 9th period using a simple moving average and k = 4 is: a. 34.75 c. 39 b. 36.50 d. 35.46 21. Excel's Solver is used in a time-series weighted moving average problem to: a. Predict estimates for more than one period into the future c. Maximize the MSE b. Minimize the mean square error (MSE) d. None of the above 22. Regarding regression analysis involving only one independent variable: a. The best method for solving is a visual fit of a line to the data; b. The best method for solving requires a "hyperplane" fit to the data. c. The least squares method is mathematically the best way to apply it; d. The dependent variable is used to predict the value of the independent variable. 23. The least squares method is based upon: a. Minimizing the unexplained variation. b. Maximizing the unexplained variation. c. Minimizing the explained variation. d. Maximizing the total variation
