Exercise 5-45 Interpretation of Regression Results: Simple Regression (LO 5-5) The direclor of surgery at a local hospilal is interested in understanding his unit's costs. An assistant collected data for the past 36 months on unit cost (labor, supplies, and so on) along with the number of procedures performed in the unil. The assistant analyzed the data using a spreadsheel program, and the following output was generated: S 1,012.000 Equation Intercept Caellicient on procedures Statistical data Correlation ocefficient 205 0.549 0.298 The unit is planning to perform an average 13.000 procedures per month for the coming year. Required: a. Use the regression output to write the surgical unit cost equation. Surgical unit cost = x Procedures b. Based on the cost equation, compute the estimated costs for the surgical unit per month for the coming year. Surgical unit costs c. The director of surgery has asked you for advice on whether he should rely on the estimate. Yes No Exercise 5-47 Learning Curves (LO 5-6) Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer inters are subject to a 60 percent learning curve for one of its important tasks, proofreading financial statements. For one of its intems, Kim Down, the firm has started to analyze the relation between time and financial statement proofreading. Financial Statements Proofread (X) Time Required to Proofread the Xth Financial Statement 8.0000 hours 4 8000 hours Required: a. Compute the time required to proofread 4, 8, and 16 financial statements. (Round your answers to 4 decimal places.) Time required for 4th financial statement hours Time required for ath financial statement Time required for 18th financial statement hours b. Assume that Kim's labor time costs $11 per hour. Compare the cost of proofreading the 1st financial statement to the cost of proofreading the 16th financial statement. What is the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement? (Do not round your intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (l.e., 32.21)) Percentage of proofreading cost for 16th financial statement to cost of prapfrearing 1st financial statement TB MC Qu. 5-32 Ballard Company incurred a total cost of... Ballard Company incurred a total cost of $8,900 to produce 400 units of pulp. Each unit of pulp required four (4) direct labor hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labor hour? O $3,500. O $6,500. O $2,400. O $8,300. Exercise 5-45 Interpretation of Regression Results: Simple Regression (LO 5-5) The direclor of surgery at a local hospilal is interested in understanding his unit's costs. An assistant collected data for the past 36 months on unit cost (labor, supplies, and so on) along with the number of procedures performed in the unil. The assistant analyzed the data using a spreadsheel program, and the following output was generated: S 1,012.000 Equation Intercept Caellicient on procedures Statistical data Correlation ocefficient 205 0.549 0.298 The unit is planning to perform an average 13.000 procedures per month for the coming year. Required: a. Use the regression output to write the surgical unit cost equation. Surgical unit cost = x Procedures b. Based on the cost equation, compute the estimated costs for the surgical unit per month for the coming year. Surgical unit costs c. The director of surgery has asked you for advice on whether he should rely on the estimate. Yes No Exercise 5-47 Learning Curves (LO 5-6) Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer inters are subject to a 60 percent learning curve for one of its important tasks, proofreading financial statements. For one of its intems, Kim Down, the firm has started to analyze the relation between time and financial statement proofreading. Financial Statements Proofread (X) Time Required to Proofread the Xth Financial Statement 8.0000 hours 4 8000 hours Required: a. Compute the time required to proofread 4, 8, and 16 financial statements. (Round your answers to 4 decimal places.) Time required for 4th financial statement hours Time required for ath financial statement Time required for 18th financial statement hours b. Assume that Kim's labor time costs $11 per hour. Compare the cost of proofreading the 1st financial statement to the cost of proofreading the 16th financial statement. What is the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement? (Do not round your intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (l.e., 32.21)) Percentage of proofreading cost for 16th financial statement to cost of prapfrearing 1st financial statement TB MC Qu. 5-32 Ballard Company incurred a total cost of... Ballard Company incurred a total cost of $8,900 to produce 400 units of pulp. Each unit of pulp required four (4) direct labor hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labor hour? O $3,500. O $6,500. O $2,400. O $8,300
