46. Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice - Relevant range. - Time period choice. - Nonlineanty. - Data accuracy. 47. The following costs were for Optimal View Inc., a contact lens manufacturer: At an output level of 500 lenses, per unit total cost is projected to be: Multiple Choice - $39.45. - $48.56. - $45.05. - $56.67. - $50.40. 48. Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth FeInas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance exnense and machine hnurs- Using the high-low method, unit variable cost is calculated to be: Multiple Choice - $1.31. - $1.20. - $1.36. - \$1.14. - $1.59 49. Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of maintenance costs must be determined. The accounting staff has suggested use of linear regression to derive an equation for maintenance hours and costs. Data regarding the The percent of the total variance that can be explained by the regression equation is Multiple Choice - 99.862% - C None of these arswer choices are correct. 99.724% - 69.613% 80.982% 50. Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C=$80,000+$12M where: C= monthly manufacturing overhead cost, and M= machine hours The standard error of estimate of the regression is $6,000. The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours. Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases. Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: Multiple Choice - $80,000. - $140,000. - $200,000. - Some amount other than these answer choices. - C$120,000. 46. Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice - Relevant range. - Time period choice. - Nonlineanty. - Data accuracy. 47. The following costs were for Optimal View Inc., a contact lens manufacturer: At an output level of 500 lenses, per unit total cost is projected to be: Multiple Choice - $39.45. - $48.56. - $45.05. - $56.67. - $50.40. 48. Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth FeInas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance exnense and machine hnurs- Using the high-low method, unit variable cost is calculated to be: Multiple Choice - $1.31. - $1.20. - $1.36. - \$1.14. - $1.59 49. Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of maintenance costs must be determined. The accounting staff has suggested use of linear regression to derive an equation for maintenance hours and costs. Data regarding the The percent of the total variance that can be explained by the regression equation is Multiple Choice - 99.862% - C None of these arswer choices are correct. 99.724% - 69.613% 80.982% 50. Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C=$80,000+$12M where: C= monthly manufacturing overhead cost, and M= machine hours The standard error of estimate of the regression is $6,000. The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours. Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases. Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: Multiple Choice - $80,000. - $140,000. - $200,000. - Some amount other than these answer choices. - C$120,000
