Homework: Chapter 10 Homework Save 4 of 4 completely Score: 0 of 4 pts P10-47 (similar to) HW Score: 0%, 0 of 10 pts Question Help Designer Weargens a chain of 10 parentes. Each department store makes its own purchasing Summary results for the regressions are as follows ick the con le vow he summary outs) che con lo view to formation) Read the arts Baker decides to use simple regression analysis to earn whether one or more of tree s (The Con in the table are covers of purchasing department costs Requirement 1. Compare and valuate the three simple regression models maled by Baker. Graph each one We will begin by graphing each region models i n the regression mode POC (MP) When drawing the one the highest and lowest van ge r MP en round purchasing department costs to the nearest increment of $10,000 and merchandise purchased to the rear milo argene graph and 8 marino Cape loc IMM 4 of 4 (0 complete) i More Info Jim Baker, assistant to the president of Designer Wear, is interested in better understanding the drivers of purchasing department costs. For many years, Designer Wear has allocated purchasing department costs to products on the basis of the dollar value of merchandise purchased. A $100 item is allocated 10 times as many overhead costs associated with the purchasing department as a $10 item tre regri with Baker recently attended a seminar titled "Cost Drivers in the Retail Ilidustry." In a presentation at the seminar, Sunrise Fabrics, a leading competitor that has implemented activity-based costing, reported number of purchase orders and number of suppliers to be the two most important cost drivers of purchasing department costs. The dollar value of merchandise purchased in each purchase order was not found to be a significant cost driver. Baker interviewed several members of the purchasing department at the Designer Wear store in Miami. They believed that Sunrise Fabrics' conclusions also applied to their purchasing department. Baker collects the following data for the most recent year for Designer Wear's 10 retail department stores: e purch Number of Purchase Orders (No. of POS) Number of Suppliers (No. of Ss) 4.350 1 Department Store 2 Baltimore 3 Chicago 4 Los Angeles Is miami 225 Purchasing Dollar Value of Department Merchandise Costs (PDC) Purchased (MPS) 1,525,000 $ 68,325,000 1,120,000 33.450,000 535,000 121,100,000 2,042 000 119,550,000 1,050,000 33,520,000 522.000 29,847,000 1.533 0001 102 RARO Clie fork 1,438 5.940 2,795 1,315 7.592 e and follow the Print Done Clear A 5 DFGHIJKS More Info wwwwwwwwwwwwwwwwwwwwww Sunrise Fabrics, a leading competitor that has implemented activity-based costing, reported number of purchase orders and number of suppliers to be the two most important cost drivers of purchasing department costs. The dollar value of merchandise purchased in each purchase order was not found to be a significant cost driver, Baker interviewed several members of the purchasing department at the Designer Wear store in Miami. They believed that Sunrise Fabrics' conclusions also applied to their purchasing department. purcha Baker collects the following data for the most recent year for Designer Wear's 10 retail department stores: A B C D E Purchasing Dollar Value of Number of Number of Department Merchandise Purchase Orders Suppliers Department Store Costs (PDC) Purchased (MPS) (No. of POs) (No. of Ss) Baltimore $ 1,525,000 $ 68,325,000 4,350 Chicago 1,120,000 33,450,000 2,555 Los Angeles 535,000 121,100,000 1.438 2,042,000 119,550,000 5.940 6 New York 1,050,000 33,520,000 2,795 7 Phoenix 522,000 29,847,000 1,315 8 Seattle 1.533,000 102.886.000 7.592 9 St. Louis 1.748.000 38,665,000 3,610 10 Toronto 1,618,000 139,315,000 1,710 11 Vancouver 1.251,000 130.940,000 4,725 Nimi tollow Print Done Clear All ora Y H department store makes its own purchasing Summary results for these regressions are as follows: (Click the icon to view the summary results.) Read the requirements one or more of three variables (the last three on models estimated by Baker. Graph each one. ng the regression model: PDC = a + (b x MPS). wes given Requirements hd merchandise purchased to 1. Compare and evaluate the three simple regrespion models estimated by Baker. Graph each one. 2. Do the regression results support the Sunrise Fabrics presentation about the purchasing department's cost drivers? Which of these cost drivers would you recommend in designing an ABC system? Print Done lick to nlarge graph w the instructions to create your graph. Clear All TELGIHL 4 U14 U CUM Each department store makes its own purchasing Summary results for these regressions are as follows: i Data Table Whether int costs ression plotting est values Regression 1: PDC = a + (b MP$) Variable Constant Independent variable 1: MP$ p=0.08; Durbin-Watson statistic=2.42 Regression 2: PDC = a + b * No. of POs) Variable Coefficient Standard Error $ 1,040,594 $ 344,830 0.0031 0.0037 -Value 3.02 0.83 chandise puro -Value Constant Coefficient Standard Error $ 31,687 $ 267,395 $ 159.48 $ 65.19 2.72 2.40 Independent variable 1: No. of POs 7 042 Durbin-Watson statistic = 1,99 Regression 3: PDC = a + (b* No. of Ss) Variable Constant Click to enlarge graph Coefficient Standard Error $ 802,629 $ 248,566 $ 3.848 $ 1,660 -Value 3.23 2.32 Independent variable 1: No. of Ss -0.40; Durbin-Watson statistic=2.00 Print Done follow the instructions To Crete your grein Cinar All Homework: Chapter 10 Homework Save 4 of 4 completely Score: 0 of 4 pts P10-47 (similar to) HW Score: 0%, 0 of 10 pts Question Help Designer Weargens a chain of 10 parentes. Each department store makes its own purchasing Summary results for the regressions are as follows ick the con le vow he summary outs) che con lo view to formation) Read the arts Baker decides to use simple regression analysis to earn whether one or more of tree s (The Con in the table are covers of purchasing department costs Requirement 1. Compare and valuate the three simple regression models maled by Baker. Graph each one We will begin by graphing each region models i n the regression mode POC (MP) When drawing the one the highest and lowest van ge r MP en round purchasing department costs to the nearest increment of $10,000 and merchandise purchased to the rear milo argene graph and 8 marino Cape loc IMM 4 of 4 (0 complete) i More Info Jim Baker, assistant to the president of Designer Wear, is interested in better understanding the drivers of purchasing department costs. For many years, Designer Wear has allocated purchasing department costs to products on the basis of the dollar value of merchandise purchased. A $100 item is allocated 10 times as many overhead costs associated with the purchasing department as a $10 item tre regri with Baker recently attended a seminar titled "Cost Drivers in the Retail Ilidustry." In a presentation at the seminar, Sunrise Fabrics, a leading competitor that has implemented activity-based costing, reported number of purchase orders and number of suppliers to be the two most important cost drivers of purchasing department costs. The dollar value of merchandise purchased in each purchase order was not found to be a significant cost driver. Baker interviewed several members of the purchasing department at the Designer Wear store in Miami. They believed that Sunrise Fabrics' conclusions also applied to their purchasing department. Baker collects the following data for the most recent year for Designer Wear's 10 retail department stores: e purch Number of Purchase Orders (No. of POS) Number of Suppliers (No. of Ss) 4.350 1 Department Store 2 Baltimore 3 Chicago 4 Los Angeles Is miami 225 Purchasing Dollar Value of Department Merchandise Costs (PDC) Purchased (MPS) 1,525,000 $ 68,325,000 1,120,000 33.450,000 535,000 121,100,000 2,042 000 119,550,000 1,050,000 33,520,000 522.000 29,847,000 1.533 0001 102 RARO Clie fork 1,438 5.940 2,795 1,315 7.592 e and follow the Print Done Clear A 5 DFGHIJKS More Info wwwwwwwwwwwwwwwwwwwwww Sunrise Fabrics, a leading competitor that has implemented activity-based costing, reported number of purchase orders and number of suppliers to be the two most important cost drivers of purchasing department costs. The dollar value of merchandise purchased in each purchase order was not found to be a significant cost driver, Baker interviewed several members of the purchasing department at the Designer Wear store in Miami. They believed that Sunrise Fabrics' conclusions also applied to their purchasing department. purcha Baker collects the following data for the most recent year for Designer Wear's 10 retail department stores: A B C D E Purchasing Dollar Value of Number of Number of Department Merchandise Purchase Orders Suppliers Department Store Costs (PDC) Purchased (MPS) (No. of POs) (No. of Ss) Baltimore $ 1,525,000 $ 68,325,000 4,350 Chicago 1,120,000 33,450,000 2,555 Los Angeles 535,000 121,100,000 1.438 2,042,000 119,550,000 5.940 6 New York 1,050,000 33,520,000 2,795 7 Phoenix 522,000 29,847,000 1,315 8 Seattle 1.533,000 102.886.000 7.592 9 St. Louis 1.748.000 38,665,000 3,610 10 Toronto 1,618,000 139,315,000 1,710 11 Vancouver 1.251,000 130.940,000 4,725 Nimi tollow Print Done Clear All ora Y H department store makes its own purchasing Summary results for these regressions are as follows: (Click the icon to view the summary results.) Read the requirements one or more of three variables (the last three on models estimated by Baker. Graph each one. ng the regression model: PDC = a + (b x MPS). wes given Requirements hd merchandise purchased to 1. Compare and evaluate the three simple regrespion models estimated by Baker. Graph each one. 2. Do the regression results support the Sunrise Fabrics presentation about the purchasing department's cost drivers? Which of these cost drivers would you recommend in designing an ABC system? Print Done lick to nlarge graph w the instructions to create your graph. Clear All TELGIHL 4 U14 U CUM Each department store makes its own purchasing Summary results for these regressions are as follows: i Data Table Whether int costs ression plotting est values Regression 1: PDC = a + (b MP$) Variable Constant Independent variable 1: MP$ p=0.08; Durbin-Watson statistic=2.42 Regression 2: PDC = a + b * No. of POs) Variable Coefficient Standard Error $ 1,040,594 $ 344,830 0.0031 0.0037 -Value 3.02 0.83 chandise puro -Value Constant Coefficient Standard Error $ 31,687 $ 267,395 $ 159.48 $ 65.19 2.72 2.40 Independent variable 1: No. of POs 7 042 Durbin-Watson statistic = 1,99 Regression 3: PDC = a + (b* No. of Ss) Variable Constant Click to enlarge graph Coefficient Standard Error $ 802,629 $ 248,566 $ 3.848 $ 1,660 -Value 3.23 2.32 Independent variable 1: No. of Ss -0.40; Durbin-Watson statistic=2.00 Print Done follow the instructions To Crete your grein Cinar All
