Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 49,620 1,500 1 2 3 4 5 6 7 4,400 2.800 2,300 1,200 2,000 30,225 72,420 49,140 41,865 25,860 37,500 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 8,400 ✓ + $ 14.55 ✔ X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel

Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 49,620 1,500 1 2 3 4 5 6 7 4,400 2.800 2,300 1,200 2,000 30,225 72,420 49,140 41,865 25,860 37,500 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 8,400 ✓ + $ 14.55 ✔ X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly order-processing costs. If needed, an Excel

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...

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Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 165,400 1,500 4,400 2,800 2,300 1,200 2,000 1 2 3 4 5 6 7 100,750 241,400 163,800 139,550 86,200 125,000 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 28,000 +$48.5 ✔ X (b.) Plot the data on a scatter diagram. Hint: In Excel, highlight the data to be included in the chart. Open the insert tab and select the Scatter chart in the Charts group. Using the information from representative high- and low- volume months, develop a cost-estimating equation for monthly order-processing costs. $ 47.864 * + $ 28,405 X X
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order Processing Costs 1 3,000 $49,620 2 1,500 30,225 4,400 72,420 2.800 49,140 2.300 41,865 25,860 37,500 3 4 S 6 7 1,200 2,000 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 15:400 +5 24.26 * 8400 + M.SS* Correct (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter Diagram $ 15,622 X+$ 23.93 XX
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 1 3,000 $ 49,620 2 1,500 30,225 4,400 72,420 2,800 49,140 2,300 41,865 1,200 25,860 2,000 37,500 555 AWN- 3 4 6 7 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $0 + $0 $0 (b.) Plot the data on a scatter diagram. Hint: In Excel, highlight the data to be included in the chart. Open the insert tab and select the Scatter cha months, develop a cost-estimating equation for monthly order-processing costs. X + $0 X
3. Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Mont Sales Orders Order-Processing Costs $ 132,320 h 1 3,000 2 3 1,500 80,600 4,400 193,120 4 2,800 131,040 5 2,300 111,640 6. 1,200 68,960 7 2,000 100,000 The data was plotted on a scatter diagram as following: Please visually check the scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. Please show your steps and calculations.
A business is studying its order processing costs behaviour and has gathered the following data for a recent seven months period. Month Sales Order Y Order Processing Costs X January 6 000 10,000 February 3 000 7,000 March 8 000 16,250 April 7 200 9,750 May 4 600 8,000 June 2 000 5,000 July 4 000 7,500 Determine the variable cost per sales order and the fixed cost using the high low method State the equation of the total mixed cost function. The following cost and activity data were taken from the factory records: Cost Activity $ (units) 28 16 31 20 40 28 36 28 44 36 47 40 Using the least squares method of linear regression, calculate the fixed and variable elements of the cost and state the linear cost function.
1. When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Cost per Unit $6,000 7,000 7,500 Number of Units Purchase 2 Purchase Purchase 4 Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Consider a company facing a demand pattern and costs as follows: Sequential Requirements Number (units) 1 20 2 40 3 110 4 120 60 30 20 30 80 120 130 40 800 Month January February March April May June July August September October November December At ht 5 6 7 8 9 10 11 12 Total $25.00 $ 0.20 a. Construct a replenishment schedule and calculate the associated costs using the Lot for Lot method. b. Repeat using the Fixed Economic Order Quantity method. c. Repeat using the Periodic Order Quantity method. d. Repeat using the Wagner-Whitin Algorithm. (Note: Students are required to solve this
⦁ Sally Company has the following sales data and total monthly cost data.Month Units Sold Total cost1 195 $ 972 125 873 105 734 155 895 95 816 215 1107 145 938 85 58Required:⦁ Estimate the variable cost per unit for Sally Company using the High-Low Method. Show your computation.
⦁ Sally Company has the following sales data and total monthly cost data.Month Units Sold Total cost1 195 $ 972 125 873 105 734 155 895 95 816 215 1107 145 938 85 58Required: ⦁ Estimate the Fixed Cost for Sally Company using the High-Low Method. Show computation.
Global Publishers has collected the following data for recent months: Month March April May June Issues published 20,500 21,800 17,750 21,200 Total cost Variable cost per unit $ Total fixed costs $ Required: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. Round the variable cost to two decimal places. $20,960 22,464 18,495 21,395 per unit Total cost = $ x Number of issues published) b. What is the estimated cost for a month in which 19,000 issues are published?
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,070 15,158 April 2,688 10,482 May 2,870 12,037 June 3,847 17,906 Oa. $1.09 Ob. $1.56 Oc. $0.16 Od. $1.05
Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 units ; Cost of placing one Order: RO 60Carrying cost per unit: RO 2 cost per unit: RO 10