Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is for my managerial accounting course. Please help Safari File Edit View History Bookmarks Develop Window Help B 37% Sun 1:10 PM Q DE

This is for my managerial accounting course. Please help

image text in transcribedimage text in transcribed
Safari File Edit View History Bookmarks Develop Window Help B 37% Sun 1:10 PM Q DE ezto.mheducation.com C Metropolitan State University Chp 8 HW Cost Estimation - ACCT 320-51 Strategic Management Accounting Connect + IW Cost Estimation i Saved Help Save & Exit Submit Check my work Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Maintenance Machine Month Costs Hours 1 JOUAWNI $2, 720 1, 810 2,880 3 ,030 1, 890 1,970 3, 140 1,990 3,220 2, 020 3 , 190 2,000 3, 130 1,980 ices 8 2,970 1,960 9 2,740 10 2, 340 1, 820 11 1, 220 12 2 ,350 1, 420 2,570 1, 710 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Include outliers in your calculations.) Maintenance costs = x SEP 27 KYSafari File Edit View History Bookmarks Develop Window Help B 37% Sun 1:10 PM Q DE E ezto.mheducation.com C Metropolitan State University Chp 8 HW Cost Estimation - ACCT 320-51 Strategic Management Accounting Connect + IW Cost Estimation i Saved Help Save & Exit Submit Check my work 9 10 2, 740 2 ,340 1, 820 11 12 2 ,350 1,220 2,570 1, 420 1, 710 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. ce's Required 1 Required 2 Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception of MAPE for each month, which should be rounded to three decimal places. Input your final answer as a percentage rounded to 1 decimal place (i.e., 0.054 = 5.4%). Include any outliers in your calculations.) Mean absolute percentage error (MAPE) % SEP 27 39 ... N MA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

Students also viewed these Accounting questions