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Martha s Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company s controller, Mathew Knight, has recently
Marthas Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The companys controller, Mathew Knight, has recently completed a cost study of the firms materialhandling department. Knight used work measurement to quantify the departments activity. The control factor unit used in the workmeasurement study was hundreds of pounds of equipment unloaded or loaded at the companys loading dock. Knight compiled the following data. Month Units of Activity hundreds of pounds of equipment loaded or unloaded MaterialHandling Department Costs January $ February March April May June July August September October November December Construct an Excel spreadsheet and use the Excel commands to perform a leastsquares regression. Estimate the variable and fixedcost components in the companys materialhandling department costs.Complete the leastsquares regression equation for the departments costs.Predict the firms materialhandling departments costs for a month when units of activity are recorded.Which cost method do you recommend?
Marthas Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The companys controller, Mathew Knight, has recently completed a cost study of the firms materialhandling department. Knight used work measurement to quantify the departments activity. The control factor unit used in the workmeasurement study was hundreds of pounds of equipment unloaded or loaded at the companys loading dock. Knight compiled the following data.
Month Units of Activity hundreds of pounds of equipment loaded or unloaded MaterialHandling Department Costs
January $
February
March
April
May
June
July
August
September
October
November
December Construct an Excel spreadsheet and use the Excel commands to perform a leastsquares regression. Estimate the variable and fixedcost components in the companys materialhandling department costs.Complete the leastsquares regression equation for the departments costs.Predict the firms materialhandling departments costs for a month when units of activity are recorded.Which cost method do you recommend?
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