Question
RTM Technology is an American technology company with several divisions. One division, Sacramento Division, manufactures and sells network components. Sacramento currently sells a single product,
RTM Technology is an American technology company with several divisions. One division, Sacramento Division, manufactures and sells network components. Sacramento currently sells a single product, an ethernet repeater. Assume you are the division manager of Sacramento Division. You have accumulated your products cost data from the last six months of Fiscal Year X1 (FYX1) to use as the basis for your operating plans for the coming year, Fiscal Year X2 (FYX2). Your divisions FYX1 cost data is in the Excel file, ACC 222 DDJDM Data Fall 2022, which is on Canvas under Files Data-Driven JDM Project. Assume your divisions manufacturing facility has the capacity to produce 500,000 ethernet repeaters annually. Requirement 1: Forecasting manufacturing costs Using your divisions FYX1 cost data in the ACC 222 DDJDM Data Fall 2022 file, estimate your divisions cost function and use it to predict your divisions manufacturing costs for the coming year. (Round all dollar amounts to two decimal places.) a. Based on the cost data provided, what is your divisions manufacturing cost function using the high-low method assuming the best cost driver for manufacturing costs is direct labor hours? (HINT: Since cost data are provided monthly, create a table that sums total manufacturing cost DM, DL, and OH and total direct labor hours for each month to identify the high and low data points for your analysis.) (1 point) 21.4x + 762.891.75 b. Based on your high-low cost function, what is your divisions estimated monthly fixed manufacturing cost for the coming period? What is your estimated variable manufacturing cost per direct labor hour? (1 point) VC = the slope is is 21.4 FC = 762,891.75
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