Thane Company is interested in establishing the relationship
between electricity costs and machine hours. Data have been
collected and a regression analysis prepared using Excel. The
monthly data and the regression output follow:
Month | Machine Hours | Electricity Costs | ||
January | 2,600 | $ | 19,250 | |
February | 3,000 | $ | 22,700 | |
March | 2,000 | $ | 14,350 | |
April | 3,200 | $ | 24,700 | |
May | 3,900 | $ | 29,100 | |
June | 3,400 | $ | 23,700 | |
July | 4,200 | $ | 25,600 | |
August | 3,600 | $ | 23,600 | |
September | 2,100 | $ | 17,200 | |
October | 3,800 | $ | 27,700 | |
November | 4,800 | $ | 32,700 | |
December | 4,300 | $ | 28,600 | |
Summary Output | |
Regression Statistics | |
Multiple R | 0.955 |
R Square | 0.912 |
Adjusted R2 | 0.904 |
Standard Error | 1,630.46 |
Observations | 12.00 |
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | 4,476.65 | 1,979.98 | 2.26 | 0.05 | 64.99 | 8,888.32 |
Machine Hours | 5.76 | 0.56 | 10.20 | 0.00 | 4.50 | 7.01 |
If the controller uses the high-low method to estimate costs, the
fixed cost portion of the cost equation for electricity costs is:
(Round intermediate calculations to 2 decimal
places.)
Multiple Choice
$1,260.00.
$24,640.00.
$4,476.65.
$1,630.46.
Variable cost = (Cost at highest activity - Cost at lowest activity) /(Highest activity-Lowest activity)
= (32,700-14,350)/(4,800-2,000) = 6.55
Fixed cost = Total cost - Total Variable cost
= 32,700 - (6.55*4800)
= 1260
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Hours 2,600 3,000 2,000 3,200 3,900 3,400 4,200 3,600 2,100 3,800 4,800 4,300 Electricity Costs $19, 250 $22,700 $14,350 $24,700 $29,100 $23,700 $25,600 $23,600 $17,200 $27,700 $32,700 $28,600 Summary Output Regression Statistics Multiple...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 2,600 $ 19,250 February 3,000 $ 22,700 March 2,000 $ 14,350 April 3,200 $ 24,700 May 3,900 $ 29,100 June 3,400 $ 23,700 July 4,200 $ 25,600 August 3,600 $ 23,600 September 2,100 $ 17,200 October 3,800 $ 27,700 November...
(2) Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 3,200 $ 18,750 February 3,600 $ 21,700 March 2,600 $ 13,850 April 3,800 $ 23,700 May 4,500 $ 28,600 June 4,000 $ 22,700 July 5,200 $ 25,100 August 4,200 $ 23,100 September 2,700 $ 16,200 October 4,400 $ 26,700...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 3,100 $ 18,700 February 3,500 $ 21,600 March 2,500 $ 13,800 April 3,700 $ 23,600 May 4,400 $ 28,550 June 3,900 $ 22,600 July 4,700 $ 25,050 August 4,100 $ 23,050 September 2,600 $ 16,100 October 4,300 $ 26,600 November...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Hours 2,500 2,900 1,900 3,100 3,800 3,300 4,100 3,500 2,000 3,700 4,700 4,200 Electricity Costs $19, 200 $22,600 $14,300 $24,600 $29,050 $23,600 $25,550 $23,550 $17, 100 $27,600 $32,600 $28,550 Summary Output Regression Statistics...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 2.500 $ 18.400 February 2,900 21,000 March 1.900 13,500 April 3,100 23,000 May 3.800 28,250 3,300 22,000 4,500 24,750 August 3.500 22,750 September 2,000 15,500 October 3,700 26,000 November 4,700 31.000 December 4.200 27,750 Summary Output Regression Stonistics Multiple 0.965 0.932...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Hours 2,300 2,700 1,700 2,900 3,600 3,100 3,900 3,300 1,800 3,500 4,500 4,000 Electricity Costs $19, 100 $22,400 $14,200 $24,400 $28,950 $23,400 $25,450 $23,450 $ 16,900 $27,400 $32,400 $28,450 Summary Output Regression Statistics...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Electricity Hours Costs 2,500 $18,400 2,900 21,000 1,900 13,500 3,100 23,000 3,800 28, 250 3,300 22,000 4,100 24,750 3,500 22,750 2,000 15,500 3,700 26,000 4,700 31,000 4,200 27,750 Summary Output Regression Statistics Multiple...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 3,000 $ 18,650 February 3,400 $ 21,500 March 2,400 $ 13,750 April 3,600 $ 23,500 May 4,300 $ 28,500 June 3,800 $ 22,500 July 4,600 $ 25,000 August 4,000 $ 23,000 September 2,500 $ 16,000 October 4,200 $ 26,500 November...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Machine Hours 2,500 2,900 1,900 3,100 3,800 Month January February March April May June July August September October November December 3,300 Electricity Costs $ 18,400 $ 21,000 $ 13,500 $ 23,000 $ 28,250 $ 22,000 $ 24,750 $ 22,750 $ 15,500 $ 26,000 $ 31,000 $ 27,750...