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Please provide calculations that how I can determine each of those plots in those two graphs below. Thank you. Fitzgerald, a large hotel chain, has
Please provide calculations that how I can determine each of those plots in those two graphs below. Thank you.
Fitzgerald, a large hotel chain, has been using activity-based costing to determine the cost of a night's stay at their hotels. A (Click the icon to view additional information.) Sarah gathers information for weekly inspection costs, rooms inspected, and inspection labor-hours as follows: (Click the icon to view the information gathered.) Read the requirements. Requirement 2. Plot the data and regression line for units inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain. Plot the data points and regression line for rooms inspected and inspection costs. When drawing the regression line, use unit levels of 200 and 300; and round the amounts to the nearest increment of $10. (Enlarge the graph and use the point tool and line tool buttons displayed below to draw the graph.) Inspection Costs Inspection Costs and Rooms Inspected $3.9682 $2,600 $2,400 $2.2007 $2,000 $1,800 $1,600 $1,400 $1,200- $1,000 $800 $600- $400- $o 100 150 200 250 300 350 400 450 500 Number of Rooms Inspected $2004 (After you hit continue, the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) Plot the data points and regression line for inspection labor-hours and inspection costs. When drawing the regression line, use labor-hours of 50 and 100; and round the amounts to the nearest increment of $10. (Enlarge the graph and use the point tool and line tool buttons displayed below to draw the graph.) . Inspection Costs Inspection Costs and Inspection Labor-Hours $3.8687 $2,600- $2.400- $2,200 $2,000- $1,800- $1,600 $1,400 $1,200- $1,000 $800- $600- $400- $200- SO 25 50 75 100 125 150 175 200 Inspection Labor-Hours X More Info One of the activities, "Inspection," occurs after a customer has checked out of a hotel room. Fitzgerald inspects every 10th room and has been using "number of rooms inspected" as the cost driver for inspection costs. A significant component of inspection costs is the cost of the supplies used in each inspection. Sarah Wilamets, the chief inspector, is wondering whether inspection labor-hours might be a better cost driver for inspection costs. X i Data Table 3 Week Rooms Inspected Inspection Labor-Hours Inspection Costs 1 210 80 $ 1,800 2 278 124 2,560 291 96 2,310 4 387 137 2,860 5 150 62 1,460 195 75 1,750 7 208 122 1,780 8 281 141 2,260 Sarah runs regressions on each of the possible cost drivers and estimates these cost functions: Inspection Costs = $547.25 + ($6.20 x Number of rooms inspected) Inspection Costs = $843.37 + ($11.99 x Inspection labor-hours)Step by Step Solution
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