Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this! Thanks! I think I did part 1 correctly. Please check. :) Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph

Please answer this! Thanks!

I think I did part 1 correctly. Please check. :)

image text in transcribedimage text in transcribed
Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Machine Costs $2, 700 Hours 1, 790 2, 860 1, 870 3, 010 3, 120 1,950 3,200 1,970 3,170 2,000 3, 110 1,980 1,960 8 2,950 1,940 2, 720 1, 800 10 11 2,320 1, 200 12 2,330 2,550 1, 400 1, 690 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Include outliers in your calculations.) Maintenance costs =$ 731 + ($ 1.10 x M = Machine Hours Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception of MAPE for each month, which should be rounded to three decimal places. calculations.) Input your final answer as a percentage rounded to 1 decimal place (i.e., 0.054 = 5.4%). Include any outliers in your Show less A Mean absolute percentage error (MAPE) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra JeterJames Reeve, Jonathan Duchac, Horace Brock, Paul Chaney

4th Edition

0470506989, 978-0470506981

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago