Plyler Plastics Company produces a variety of custom plastics products for a worldwide clientele. The company's cost accounting manager, Martha Johns, is beginning to implement an activity-based costing system and has gathered data on the quality inspections activity. She is unsure what the most appropriate driver is for this activity cost pool, but she is considering number of units produced, number of batches produced, machine hours, and direct labor hours. She has gathered weekly information for the past two years and has asked you to help her determine which activity driver to select. Click here to view Excel data (b) Your answer is correct. Using Excel's CORREL formula, determine the correlation between each activity driver level and the inspections cost. (Round answers to 3 decimal places, eg. 52.752. Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (45)) Correlation -0.122 Units produced Machine hours 0.134 Batches 0.837 Direct labor hours -0.097 Your answer is correct. Using Excel's RSQ formula, determine how much of the variation in activity costs each activity driver explains. (Round answers to 3 decimal places, eg. 52.752.) 12 0.015 Units produced Machine hours 0.018 Batches 0.700 Direct labor hours 0.009 Your answer is correct. Based on your analysis, which activity driver do you recommend? Batches e Textbook and Media Assistance Used Attempts: 1 of 3 used (e) x Your answer is incorrect. Assuming the past two years represent the expected level of costs and activity for the coming year, what activity cost rate for quality inspections should be used to assign costs to products in the coming year? (Round answer to 2 decimal places, eg. 52.75.) Cost rate 357.31 per batch Plyler Plastics Company produces a variety of custom plastics products for a worldwide clientele. The company's cost accounting manager, Martha Johns, is beginning to implement an activity-based costing system and has gathered data on the quality inspections activity. She is unsure what the most appropriate driver is for this activity cost pool, but she is considering number of units produced, number of batches produced, machine hours, and direct labor hours. She has gathered weekly information for the past two years and has asked you to help her determine which activity driver to select. Click here to view Excel data (b) Your answer is correct. Using Excel's CORREL formula, determine the correlation between each activity driver level and the inspections cost. (Round answers to 3 decimal places, eg. 52.752. Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (45)) Correlation -0.122 Units produced Machine hours 0.134 Batches 0.837 Direct labor hours -0.097 Your answer is correct. Using Excel's RSQ formula, determine how much of the variation in activity costs each activity driver explains. (Round answers to 3 decimal places, eg. 52.752.) 12 0.015 Units produced Machine hours 0.018 Batches 0.700 Direct labor hours 0.009 Your answer is correct. Based on your analysis, which activity driver do you recommend? Batches e Textbook and Media Assistance Used Attempts: 1 of 3 used (e) x Your answer is incorrect. Assuming the past two years represent the expected level of costs and activity for the coming year, what activity cost rate for quality inspections should be used to assign costs to products in the coming year? (Round answer to 2 decimal places, eg. 52.75.) Cost rate 357.31 per batch
