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Random Inc. Cost data for the last 3 years Overhead Costs Units Produced January-17 $78,000 5,679 Use regression and show the equation used for Random
Random Inc. | Cost data for the last 3 years | |||||||||||||
Overhead Costs | Units Produced | |||||||||||||
January-17 | $78,000 | 5,679 | Use regression and show the equation used for Random to separate overhead into fixed and variable components. | |||||||||||
February-17 | $91,000 | 6,751 | How much of the change in costs will this equation predict? | |||||||||||
March-17 | $100,000 | 7,539 | ||||||||||||
April-17 | $78,000 | 5,335 | What is the variable cost per unit for overhead? Round to the nearest cent | |||||||||||
May-17 | $89,000 | 6,480 | ||||||||||||
June-17 | $93,000 | 7,630 | What is the fixed overhead cost per month? Round to the nearest dollar | |||||||||||
July-17 | $87,000 | 6,331 | ||||||||||||
August-17 | $94,000 | 7,998 | Random analyzes their other costs and finds the following (in addition to the overhead costs above): | |||||||||||
September-17 | $81,000 | 5,943 | Direct Mat | Each unit of inventory uses 2 gallons of materials and each gallon costs $3 | ||||||||||
October-17 | $85,000 | 7,081 | Direct Labor | On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift | ||||||||||
November-17 | $104,500 | 7,694 | Each month Random spends $26,500 on selling and administration costs | |||||||||||
December-17 | $104,000 | 8,903 | Sales price for 2021 is estimated at $36 per unit | |||||||||||
January-18 | $92,000 | 7,485 | ||||||||||||
February-18 | $104,000 | 9,062 | ||||||||||||
March-18 | $96,000 | 8,189 | What is the contribution margin per unit? Round to the nearest cent | |||||||||||
April-18 | $77,000 | 5,410 | ||||||||||||
May-18 | $83,000 | 6,556 | How many units does Random need to sell in a month to break even in 2021? | |||||||||||
June-18 | $95,000 | 7,850 | ||||||||||||
July-18 | $65,000 | 4,836 | How many units does Random need to sell in a month to make $25,000 of profit before taxes? | |||||||||||
August-18 | $92,000 | 6,828 | ||||||||||||
September-18 | $77,000 | 6,221 | How much in dollars must Random sell in a month to make $100,000 in profit before taxes? | |||||||||||
October-18 | $105,000 | 8,238 | ||||||||||||
November-18 | $103,000 | 7,842 | ||||||||||||
December-18 | $96,000 | 8,086 | Show the predicted contribution margin format income statement for January if production and sales are 7,100 units for January 2021 | |||||||||||
January-19 | $84,500 | 6,887 | ||||||||||||
February-19 | $100,000 | 8,438 | Show the predicted contribution margin format income statement for February 2021 if sales increase from January by 200 units. | |||||||||||
March-19 | $83,000 | 5,829 | Also in February, selling costs are increased by $2,000/month, a new machine increases fixed overhead by $6,000 | |||||||||||
April-19 | $79,000 | 5,639 | and makes it so that workers can make 24 in a shift (changes the direct labor per unit) | |||||||||||
May-19 | $74,000 | 5,703 | Other costs should be consistent with January. | |||||||||||
June-19 | $81,000 | 6,455 | ||||||||||||
July-19 | $82,000 | 6,370 | ||||||||||||
August-19 | $74,000 | 5,684 | ||||||||||||
September-19 | $72,000 | 4,906 | ||||||||||||
October-19 | $73,000 | 5,026 | ||||||||||||
November-19 | $92,000 | 7,630 | ||||||||||||
December-19 | $82,000 | 4,014 | ||||||||||||
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