Required information Problem 6-42 Continuation of Preceding Problem; Computing Least-Squares Regression Estimates; Comparing Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-6, 6-9) The following information applies to the questions displayed below.) Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, Mathew Knight, has recently completed a cost study of the firm's material handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock Knight compiled the following data. Month January February March April May Units of activity (hundreds of pounds of equipment loaded or unloaded) 2,200 2.000 1.700 1.400 2.600 2.800 2.400 2.200 3,000 1,500 Material andling Department Costa $12,100 11,700 11.450 10,600 11,500 13.150 22.400 11.00 12,600 11.250 11,750 11.750 July September October November December 1.00 Problem 6-42 Part 1 Month January February March April May June July August September October November December Units of activity (hundreds of pounds of equipment loaded or unloaded) 2,200 2,000 1,700 1.400 2,600 2,800 2,400 2,200 3,000 1,500 1,600 1,800 Material Handling Department Costs $12,100 11,700 11.450 10,600 11,500 13,150 12,400 11,800 12,600 11,250 11,750 11,750 Problem 6-42 Part 2 2. Complete the least-squares regression equation for the department's costs. (Do not round Intermediate calculations. Round variable cost per unit to 2 decimal places and other answer to the nearest whole dollar amount.) Total monthly cost per unit of activity Month January February March April May June July August September October November December Units of activity (hundreds of pounds of equipment loaded or unloaded) 2,200 2,000 1,700 1.400 2,600 2,800 2,400 2,200 3,000 1,500 1,600 1,800 Material Handling Department Costs $12,100 11,700 11.450 10,600 11,500 13,150 12,400 11,800 12,600 11,250 11,750 11,750 Problem 6-42 Part 2 2. Complete the least-squares regression equation for the department's costs. (Do not round Intermediate calculations. Round variable cost per unit to 2 decimal places and other answer to the nearest whole dollar amount.) Total monthly cost per unit of activity Month January February March Apr 11 May June July August September October November December Units of Activity (hundreds of pounds of equipment loaded or unloaded) 2,200 2,000 1,700 1,400 2.600 2,800 2.400 2,200 3,000 1,500 1.600 1,800 Material Handling Department Coats $12, 100 11,700 11,450 10,600 11.500 13. 150 12,400 11,800 12,600 11.250 11,750 11.750 Problem 6-42 Part 3 3. Predict the firm's material handling department's costs for a month when 2,450 units of activity are recorded. (Do not round Intermediate calculations. Round variable cost per unit to 2 decimal places and final answer to the nearest whole dollar amount.) Total monthly cost
