Data for Acct. 306 Assessment ProjectSpring 2017

Queens Lamps Inc specializes in manufacturing custom designed lamps. It is a low volume manufacturer.

Its cost data for four years is as follows.

Sales Price Per Unit: $400.00

Variable Selling and General Expenses per unit $12.00

Monthly Fixed Selling and General Expenses $2,000

Observation Number Month Year Number of Production Batches Units Produced Manufacturing Overhead Machine Hours Direct Material Cost Direct Labor Cost

1 Jan 20X1 8 121 10,991 1,557 3,703 4,646

2 Feb 20X1 4 103 9,724 1,259 3,059 4,408

3 Mar 20X1 5 82 9,830 970 2,411 3,674

4 Apr 20X1 7 123 11,006 1,631 3,653 4,723

5 May 20X1 10 95 10,413 1,235 2,850 4,028

6 Jun 20X1 5 100 10,403 1,391 2,970 4,280

7 Jul 20X1 11 125 11,307 1,479 3,750 5,750

8 Aug 20X1 5 68 9,716 955 2,060 2,530

9 Sep 20X1 3 130 10,310 1,808 3,822 4,992

10 Oct 20X1 6 80 9,622 988 2,448 3,520

11 Nov 20X1 4 124 10,237 1,483 3,683 4,613

12 Dec 20X1 10 128 11,120 1,597 3,802 5,530

13 Jan 20X2 5 121 10,311 1,715 3,630 4,453

14 Feb 20X2 7 71 10,103 951 2,173 3,039

15 Mar 20X2 7 122 10,777 1,507 3,587 4,197

16 Apr 20X2 10 35 9,822 473 1,050 1,330

17 May 20X2 4 116 10,527 1,493 3,480 4,083

18 Jun 20X2 8 44 9,331 578 1,294 2,006

19 Jul 20X2 11 71 10,697 886 2,087 2,698

20 Aug 20X2 6 57 9,767 771 1,727 2,440

21 Sep 20X2 10 56 10,241 692 1,697 2,419

22 Oct 20X2 5 73 9,695 940 2,146 3,066

23 Nov 20X2 6 128 10,746 1,498 3,802 5,171

24 Dec 20X2 9 114 10,790 1,615 3,420 4,697

Acc 306 Quantitative Methods Project

Cost Behavior Analysis using Regression

GENERAL INSTRUCTIONS

Data should be analyzed in Excel. Everything should be appropriately labeled.

1. Break-Even Analysis: Calculate the following, assuming Simple Regression (show work in the Break-Even tab):

a. What is the average per Unit Direct Materials Cost?

b. What is the average per Unit Direct Labor Cost?

c. Assume variable General and Administrative expenses are $12 per unit. What is the total variable cost per unit?

d. Assume total fixed General and Administrative expenses are $2,000 per month. What is the total fixed cost per month?

e. Assume sales price per unit is $400. What is the Contribution Margin Per Unit?

f. What is the Break Even Point in Units?