Martina Ferruolo, president of Hilldale Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: |(Click the icon to view the data.) Requirements 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 9,200 and support costs were $100,100. 3. A least-squares regression analysis gave the following output: Regression equation: Y = $33,821 + $6.14% What recommendations would you give the president based on these analyses? Requirement 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. (Enter the variable cost per machine hour to the nearest cent.) The variable support cost amounts to $ per machine hour and the fixed support cost amounts to S per month using the high-low method Requirement 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 9,200 and support costs were $100,100. The high-low method uses to determine the cost function. Since the new October there would data Dairement 3 Alast cuvaros raraccion analysis. Ovo the followinoutout- Requirement 3. A least squares regression analysis gave the following output: Regression equation: Y = $33,821 + $6.14X What recommendations would you give the president based on these analyses? The regression analysis results the results of the high-low method. As a result, estimates of total support the expected machine hour usage. cost so the results Martina would be advised to use The high-low method used the results from the analysis, which are based on Month May June July August September Machine Hours Support Costs 4,500 $ 67,000 8,500 82,400 9,900 99,000 10,000 100,000 7,700 70,000 Martina Ferruolo, president of Hilldale Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: |(Click the icon to view the data.) Requirements 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 9,200 and support costs were $100,100. 3. A least-squares regression analysis gave the following output: Regression equation: Y = $33,821 + $6.14% What recommendations would you give the president based on these analyses? Requirement 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. (Enter the variable cost per machine hour to the nearest cent.) The variable support cost amounts to $ per machine hour and the fixed support cost amounts to S per month using the high-low method Requirement 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 9,200 and support costs were $100,100. The high-low method uses to determine the cost function. Since the new October there would data Dairement 3 Alast cuvaros raraccion analysis. Ovo the followinoutout- Requirement 3. A least squares regression analysis gave the following output: Regression equation: Y = $33,821 + $6.14X What recommendations would you give the president based on these analyses? The regression analysis results the results of the high-low method. As a result, estimates of total support the expected machine hour usage. cost so the results Martina would be advised to use The high-low method used the results from the analysis, which are based on Month May June July August September Machine Hours Support Costs 4,500 $ 67,000 8,500 82,400 9,900 99,000 10,000 100,000 7,700 70,000
