Question
The Ferb Products Company needs to predict the labor cost in producing made-to-order mugs. The following production information is available: Year 2015 2016 2017 2018
| The Ferb Products Company needs to predict the labor cost in producing made-to-order mugs. The following production information is available: | ||||||
| Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| Mugs Produced | 1,150 | 1,600 | 1,100 | 2,100 | 1,500 | 1,300 |
| Labor-Hours | 850 | 975 | 800 | 1,150 | 950 | 875 |
| Labor Cost | $8,400 | $9,000 | $7,900 | $10,700 | $9,700 | $9,900 |
| a. Develop an equation for labor costs using the high-low method of cost estimation. |
Fixed Costs no decimals
Variable Cost per Unit two decimals
b. Predict total costs for an annual usage of 3,500 labor hours.
Total Costs no decimals
| The Ferb Products Company needs to predict the labor cost in producing made-to-order mugs. The following production information is available: | ||||||
| Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| Mugs Produced | 1,150 | 1,600 | 1,100 | 2,100 | 1,500 | 1,300 |
| Labor-Hours | 850 | 975 | 800 | 1,150 | 950 | 875 |
| Labor Cost | $8,400 | $9,000 | $7,900 | $10,700 | $9,700 | $9,900 |
| a. Develop an equation for labor costs using the high-low method of cost estimation. |
Fixed Costs no decimals
Variable Cost per Unit two decimals
b. Predict total costs for an annual usage of 3,500 labor hours.
Total Costs no decimals
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Benfords Law
Authors: Mark J. Nigrini
1st Edition
1118152859, 9781118152850
