Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please send me the detailed answers to this exercise. Thank you very much Susan Supplies Ltd is a wholesaler for a large variety of plumbing

image text in transcribed

Please send me the detailed answers to this exercise. Thank you very much

Susan Supplies Ltd is a wholesaler for a large variety of plumbing supplies. The company's accountant, Moriss, has recently completed a cost study of the firm's Shipping Department in which he used the kilograms of supplies loaded or unloaded at the company's loading dock to quantify the department's activity. Susan supplies compiled the following data. Month January February March April May une July August September October November December Kilograms of supplies unloaded or loaded 3 800 3 200 2 600 2 000 4 400 4 800 4 000 3 600 5 200 2 200 2 400 2 800 Shipping Department costs S 23 400 22 600 22 500 20 400 22 200 25 100 24 000 22 800 26 240 22 100 22 700 22 700 Required A. Draw a scatter diagram of the cost data for the Shipping Department. B. Estimate the Shipping Department's cost behaviour using the high-low method. Use an [2 Marks] equation to express the results of this estimation method. Using the equations estimated in Part 2 predict the Shipping Department's costs for a month when loads totalling 5500 kilograms are moved. Prepare least squares regression analysis to estimate the variable and fixed components for the Shipping Department costs. Based on your spreadsheet write the least squares regression equation for the Department's costs. Using the equation from Part E, predict the firm's Shipping Department's costs for a month when loads totalling 5500 kilograms are moved. Why do these cost predictions estimated using the high-low and regression methods differ? Which method do you recommend? Explain your answer [5 Marks] C. [2 Marks] D. [5 Marks] E. [2 Marks] F. [2 Marks] G. [2 Marks]

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_2

Step: 3

blur-text-image_3

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

World Class Internal Audit Tales From My Journey

Authors: Norman Marks

1st Edition

1500791962, 978-1500791964

More Books

Students also viewed these Accounting questions

Question

3. How has e-commerce transformed marketing?

Answered: 1 week ago