Please complete the following exercises from the end of Chapter 4 (page 110-114) where E = Exercise, P = Problem, and C = Case: E 34 E 42 P 50 Problem 50 requirement C states: ?Using the data shown and a spreadsheet program, perform a regression analysis; Discuss any differences in the results and the potential impact on decision making?. In the corner on the left hand side of the page it says ?Excel?. The regression example and steps to complete in Excel start on page 97 and go through page 99. Exhibit 4-10, Exhibit 4-11, Exhibit 4-12, and Exhibit 4-13 show the example as it should appear in Excel. I have atttached the excel template and the pages from the book containing the problems I stated it and think I did it ok but if you could please double check them and also assist me in problem 50 for sure

company's costs. Erin has estimated her cost equation to be "Total cost = $4,000 + $40 per planning hour." On the other hand, Teresa has estimated her cost equation to be "Total cost = $250 + $60 per planning hour." Required A. What could explain such a difference in the cost equations? B. If each sister works a total of 135 planning hours, what total costs would each report? 40. Valentine is a manufacturer of fine chocolates. Recently, the owner, Melinda Gross, asked her controller to perform a regression analysis on production costs. Melinda believes that pounds of chocolate produced drive all of the company's production costs. The controller generated the following regression output: LO2 / Fixed costs: 5204.07 R Square 0.50688 Standard Error 1.43764 Analysis of Variance DF Mean Square Sum of Squares 1 418.52992 481.52992 Residual 197 407.16375 2.06682 F = 202.49935 Signif. F = 0.0000 Regression Variables in the Equation Variable Pounds Intercept Standard Error t Stat P-Value 7.940 0.055794 14.230 0.0000 204.070 0.261513 20.780 0.4361 Coefficients Required Calculate an estimated total cost assuming that Valentine manufactures 5,000 pounds of chocolate. 41. Refer to exercise 40. Melinda has become more curious about the regression analysis and has asked more questions. LO2 Required A. Melinda would like to know whether she is correct in assuming that the amount of chocolate is a significant driver of production costs. What can you tell her? B. What is the company's cost equation? 42. Gregory's Gems accumulated the following production and overhead cost data for the past 5 months. LO2 \u0019 Variable cost per unit: Production (units) Overhead Cost January 10,600 $40,250 February 10,500 40,000 March 11,500 44,250 April 12,500 45,500 May 11,000 43,750 $2.75 Required A. Use the high/low method to calculate the variable cost per unit and fixed costs for Gregory's Gems. B. What are estimated total costs for production of 12,000 units? Exercises 111 L02 43. PG Phones accumulated the following production and overhead cost data for the past 5 months related to its production of cell phones. Production (cell phones) Overhead Cost January 13,600 $34,500 February 11,500 29,500 March 12,750 30,100 April 14,300 35,900 May 13,250 32,650 Required A. Use the high/low method to calculate the variable cost per unit and fixed costs for PG Phones. B. What are estimated total costs for production of 13,000 cell phones? L02 \u0019 Fixed costs: $4,000 44. Captain Co. used the high/low method to derive the cost formula for electrical power cost. According to the cost formula, the variable cost per unit of activity is $3 per machine hour. Total electrical power cost at the high level of activity was $7,600 and was $7,300 at the low level of activity. The high level of activity was 1,200 machine hours. Required Calculate the low level of activity. LO2 45. Delia, Inc. is preparing a budget for next year and requires a breakdown of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and direct labor hours worked are available for the last 6 months: \u0019 Fixed costs: $5,200 Cost of Steam Direct Labor Hours $ 15,850 3,000 August 13,400 2,050 September 16,370 2,900 October 19,800 3,650 November 17,600 2,670 December 18,500 2,650 $101,520 16,920 July Required A. Use the high/low method to calculate the estimated variable cost of steam per direct labor hour. B. Prepare a graph of the cost of steam and the direct labor hours. Show labor hours on the x-axis and costs on the y-axis. What can you observe from the graph you prepared? (Hint: Set the minimum y-axis value to $11,000.) LO3 112 46. Tom Wagner and Jim Wilson are partners in an outdoor equipment store, Outerbanks. The two partners have been debating whether to keep the store open extra hours on Friday and Saturday. Jim has compiled the following cost data. Cost Behavior and Relevant Costs c. Y = $25,00 + $2.89X d. Y= $12,500 + $3.40X 19. When using the high/low method, the change in cost divided by the change in volume is: a. the variable cost per unit b. the fixed cost per unit c. the mixed cost per unit d. the total cost per unit LO2 20. Generally speaking, variable costs are relevant to production decisions, except when: a. the variable costs are part of a mixed cost b. the variable costs are unavoidable c. the variable costs do not differ between alternatives d. none of the above; variable costs are always relevant to production decisions LO3 21. Generally speaking, fixed costs are not relevant to production decisions, except when: a. the fixed costs are part of a mixed cost b. the fixed costs are unavoidable c. the fixed costs differ between alternatives d. none of the above; fixed costs are always relevant to production decisions LO3 22. The after-tax cost of a tax-deductible cash expenditure can be calculated as follows: a. After-tax cost = Before-tax cost x (1 tax rate) b. After-tax cost = (Before-tax cost x tax rate) 1 c. After-tax cost = Before-tax cost x tax rate d. After-tax cost = Before-tax cost x (tax rate 1) LO4 23. A manager is considering a project that will increase sales revenue by $120,000 without affecting expenses. What is the after-tax revenue given a 30 percent tax rate? a. $36,000 b. $84,000 c. $120,000 d. $150,000 LO4 Concept Questions 24. Describe the behavior of direct material cost in total and per unit as production volume changes. 101 25. Describe the relevant range and how it relates to cost behavior. LOl 26. How will fixed costs expressed on a per unit basis react to a change in the level of activity? 101 27. Give the equation that best describes the fundamental relationship among total costs (TC), fixed costs (FC), and variable costs per unit (VC). Use TC, FC, and VC in formulating your answer. LO1 28. Discuss the meaning of dependent and independent variables in regression analysis. LO2 29. Discuss the meaning of R square in regression analysis. What does an R square of 1.00 mean? 102 30. Discuss situations in which the high/low method may provide inaccurate estimates of fixed and variable costs. LO2 31. Why are fixed costs not relevant for most short-term decisions? LO3 LO3 32. Compare and contrast the terms relevant costs and irrelevant costs as they pertain to decision making. 33. Discuss the impact of taxes on costs and how that impact affects decision making. Concept Questions LO4 109 Exercises 101 34. Baby Toys Co. produces fine porcelain dolls that are sold in exclusive gift shops. The controller and sales manager are discussing potential price increases and have started looking at various costs to consider their potential impact on price. The following are several of the costs they are discussing. a. Advertising b. Packaging (each doll is carefully packaged in a nicely designed collectible carton) c. Supervisors' salaries d. Fabric used in production (each doll is adorned in unique fabrics) e. Assembly labor f. Mortgage payment on the production facility g. Production facility utilities h. Quality assurance (each doll is carefully inspected) Required Assist the controller and sales manager by indicating whether each of the above costs is most likely a fixed cost (FC) or a variable cost (VC). 101 35. Carla Janes and Associates incurred total costs of $10,000 to produce 500 custom mirrors. A total of 550 hours were required for the production of the mirrors. Direct labor is variable and costs $10 per hour. Required How much fixed cost did Carla Janes and Associates incur? LO1 36. Sara Ouellette has leased a new automobile under a special lease plan. If she drives the car 1,000 miles or less during a 1-month period, the lease payment is $250. If the mileage ranges between 1,001 and 1,500 miles, the lease payment becomes $300. If the mileage ranges between 1,501 and 2,000 miles, the lease payment rises to $350. Required A. What type of cost is the lease? B. If Sara only drives the car between 1,200 and 1,400 miles per month, then what type of cost does the lease effectively become? LO1 37. Doors and Keys, Inc., provides custom creation of door locks for expensive homes. The company has recently become concerned about its ability to plan and control costs. Howard Lockwood, the company's founder, believes that he can summarize the company's monthly cost with a simple formula that appears as "Cost = $12,800 + $25.00 per labor hour." Required If Doors and Keys' employees work 850 hours in a single month, calculate an estimate of the company's total costs. 101 38. Killy's Baskets has the following current year costs: Variable costs $6 per unit Fixed costs $7,000 Killy and a key supplier have entered into an arrangement that will result in a per unit decrease in Killy's variable cost of $0.50 next year. Rental space will also be reduced, thereby decreasing fixed costs by 10 percent. Required A. If the company makes these changes, what is the new cost equation? B. Given the new cost equation, determine estimated total costs if production remains at 12,000 units. 101 \u0019 Teresa's variable costs: $8,100 39. Sisters Erin Joyner and Teresa Hayes have started separate companies in the same city. Each company provides party planning services for weddings, birthday parties, holiday parties, and other occasions. Erin and Teresa graduated from Upper State University and completed a managerial accounting course, so they both understand the importance of managing their Cost Behavior and Relevant Costs Manager salary $45,000 per year Assistant manager salary (expected to work extra hours) $23,000 per year Store utilities $900 per month (on average) After hours security (9 P.M. $10 per hour to 8 A.m.) Store rent $3,500 per month Shopping center assessment (based on square footage) $12,000 per year Sales associates' wages $8.50 per hour Tom and Jim do not anticipate hiring additional employees, but would instead ask current employees to work additional hours. No overtime work is expected as all employees currently work a maximum of 32 hours per week. Required Which of these costs are relevant to the decision to stay open extra hours on Friday and Saturday? Why are these costs relevant? 47. Barnett Corporation anticipates net income of $1,200,000 this year. The company is considering signing an equipment lease that would result in a $175,000 deductible expense this year. The company's tax rate is 35 percent. LO4 Required A. What are the tax expense and net income after taxes for the anticipated net income without the lease of the equipment? B. What are the tax expense and net income after taxes if the equipment is leased? 48. Ben Rakusin is contemplating an expansion of his business. He believes he can increase revenues by $9,000 each month if he leases 1,500 additional square feet of showroom space. Rakusin has found the perfect showroom. It leases for $4,000 per month. Ben's tax rate is 30 percent. LO4 \u0019 After-tax revenues increase: $6,300 Required What estimated after-tax income will Rakusin earn from his expansion? 49. Most business transactions have tax consequences. Understanding the "after-tax" effects of transactions is fundamentally important. Consider the following: Before-Tax Revenue Tax Rate $100,000 40% 200,000 20% 135,000 LO4 35% Before-Tax Cost Tax Rate $25,000 7 After-Tax Cost 40% 50,000 After-Tax Revenue 20% 35,000 35% 74 Required Calculate the after-tax revenue or after-tax cost for each of the above transactions. Problems 50. Autodesk Corporation produces toolboxes used by construction professionals and homeowners. The company is concerned that it does not have an understanding of its utility consumption. The company's president, George, has asked the plant manager and cost accountant to Problems 101.2 113 work together to get information about utilities cost. The two of them accumulated the following data for the past 14 months (production volume is presented in units): \u0019 Fixed costs: $929 Production Utility Cost January 113,000 $1,712 February 114,000 1,716 90,000 1,469 April 110,000 1,600 May 112,000 1,698 June 101,000 1,691 July 104,000 1,700 August 105,000 1,721 September 115,000 1,619 October 97,000 1,452 November 98,000 1,399 December 98,000 1,403 January 112,000 1,543 February EXCiti 107,000 1,608 March Required A. Using the high/low method, what is the company's utility cost equation? B. What would be the expected utility cost of producing 120,000 units? (The relevant range is 85,000 to 125,000 units of production.) C. Using the data shown and a spreadsheet program, perform a regression analysis. Discuss any differences in the results and the potential impact on decision making. L012 51 Global Office Services & Supplies sells various products and services in the greater Wentworth area. Duplicating is one of its most popular services for corporate customers and individuals alike. Selected data from the Duplicating Department for the previous 6 months are as follows: agE Number of Copies Made Duplicating Department's Costs January 20,000 $1,700 February 25,000 1,950 March 27,000 2,100 April 22,000 1,800 May 24,000 1,900 June 30,000 2,400 4.2.rdiortikrakhif4 Regression output based on the previous data is as follows: 43j Coefficient of intercept 280.79 R square Number of observations 6 X coefficient (independent variable) 114 0.967696 0.0687 Cost Behavior and Relevant Costs