Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) January February March April May June July August September October November December Sum Average Hours of Activity 600 660 840 600 1,040 670 660 1,080 1,010 970 750 720 9,600 800 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b 557.023 0.68070 What is the fixed cost per month using the highllow method to estimate the cost equation? What is the fixed cost per month using the high-low method to estimate the cost equation? Multiple Choice $4,224 $4,460. $8,440. $16,620. The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) January February March April May June July August September October November December Sum Average Hours of Activity 600 660 840 600 1,040 670 660 1,080 1,010 970 750 720 9,600 800 Maintenance Costs $ 4,560 3,360 3,960 3,180 4,710 3,320 3,390 4,830 4,620 4,410 3,660 3,520 $ 47,520 3,960 1,773.50 2.7331 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b 557.023 0.68070 405.915 0.61718 3.184 4.015 What is the fixed cost per month using the high-low method to estimate the cost equation? 557.023 0.68070 error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b 405.915 0.61718 3.184 4.015 What is the fixed cost per month using the high-low method to estimate the cost equation? Multiple Choice $4,224 $4,460 $8.440 $16.620

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Banking And Finance Issues In Emerging Markets

Authors: William A. Barnett

1st Edition

1787564541, 9781787564541

More Books

Students also viewed these Accounting questions

Question

=+b. What do you see as the future of bioengineering?

Answered: 1 week ago