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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 completed
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 completed a cost study of the firm's material-handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month Units of Activity (hundreds of pounds of equipment loaded or unloaded) January 3,600 Material-Handling Department Conta $13,500 February 3,400 13,100 March 3,100 12,150 April 2,800 12,000 May June 4,000 12,900 4,200 15,250 July 3,800 13,800 August 3,600 13,200 September 4,400 14,280 October 2,900 11,950 November 3,000 13,150 December 3,200 13,150 Problem 6-42 Part 1 Required: 1. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the company's material-handling department costs. (Do not round intermediate calculations. Round the Variable-cost component to 2 decimal places and the Fixed-cost component to the nearest whole dollar amount.) Fixed-cost component Variable-cost component
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