Question
The Oneida Caterings production division processes the data from the companys records. The Oneida Catering costs are used by Meals and Jobs. The following regression
The Oneida Caterings production division processes the data from the companys records. The Oneida Catering costs are used by Meals and Jobs. The following regression output is obtained when costs are regressed on the two independent variables (meals and Jobs) mentioned.
The coefficients are in dollars.
| SUMMARY OUTPUT | |
| Regression Statistics | |
| Multiple R | 0.902271197 |
| R Square | 0.814093312 |
| Adjusted R Square | 0.785492284 |
| Standard Error | 1172.86924 |
| Observations | 16 |
| ANOVA | |||||
|
| df | SS | MS | F | Significance F |
| Regression | 2 | 78310810.68 | 39155405 | 28.46378 | 1.78E-05 |
| Residual | 13 | 17883089.32 | 1375622.3 |
|
|
| Total | 15 | 96193900 |
|
|
|
|
| Coefficients | Standard Error | t Stat | P-value |
| Intercept | 1720.355196 | 1871.209693 | 0.9193813 | 0.374641 |
| Meals | 3.04202908 | 0.422479141 | 7.2004243 | 6.94E-06 |
| Jobs | 4.379687014 | 54.83905457 | 0.0798644 | 0.937561 |
a. Write down the estimated Oneida Catering costs equation using the regression information.
b. Determine the estimated Oneida Catering costs on Meals for 1,200 units and Jobs for 30 units.
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
8th Edition
9780618777174, 618777180, 618777172, 978-0618777181
