Question
Machine hours and electricity costs for Wells Industries for the year 2011 are as follows: Month Machine Hours Electricity Costs January 2,000 9,200 February 2,320
Machine hours and electricity costs for Wells Industries for the year 2011 are as follows:
Month Machine Hours Electricity Costs
January 2,000 9,200
February 2,320 10,500
March 1,520 6,750
April 2,480 11,500
May 3,040 14,125
June 2,640 11,000
July 3,280 12,375
August 2,800 11,375
September 1,600 7,750
October 2,960 13,000
November 3,760 15,500
December 3,360 13,875
A. Using the least square method, develop an estimate of variable electricity costs per machine hour.
B. Using the least square method, develop an estimate of fixed electricity costs per month.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
