Question :
41. George’s Ice Cream Shop believes most of its utilities costs : 1291700
41. George’s Ice Cream Shop believes most of its utilities costs are mixed. George has collected the following data on gallons of ice cream used and related utilities costs for the past six months:
Number ofgallons used
Utilities cost
May
20
$ 700
June
30
850
July
40
1,100
August
30
975
September
25
900
October
22
720
George has run a regression analysis on the above information and has come up with the following data:
Coefficients
Intercept
329.5047923
X Variable 1
19.5686901
Using regression analysis, which of the following formulas would be the best predictor of total estimated mixed costs? A. Y = $300 + $20xB. Y = $329.50 + $19.57xC. Y = $900 + $30xD. Y = $19.56 + $329.50x
42. Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R2) of .86. Which of the following statements best describes the meaning of R2? A. 86 percent of the company’s total costs are utilities costs.B. 14 percent of the variation in utilities costs is explained by the increase or decrease in production.C. 86 percent of the variation in utilities costs is explained by the increase or decrease in production.D. 86 percent of the company’s total costs are fixed costs and the remaining 14 percent are variable costs.
43. In regression analysis, an R square (R2) of 1.0 would indicate: A. that 1 percent of the data points are on the regression line.B. that 1 percent of the total mixed costs can be attributable to fixed costs.C. that 1 percent of the total mixed costs can be attributable to variable costs.D. that there is a perfect correlation between the independent and dependent variables.
44. The high/low method: A. considers only the highest and lowest costs for a given time period.B. is superior to regression analysis.C. considers all data points available.D. uses the data points for only the high and low levels of activity.
45. When using the high/low method, the change in cost divided by the change in volume is: A. the fixed cost per unit.B. the mixed cost per unit.C. the variable cost per unit.D. the total cost per unit.
46. Cool CreamsCool Creams provided the following data for number of ice creams produced and its total overhead costs for past five months:
Number of ice creams
Total overhead costs
January
14,000
$64,500
February
25,000
114,000
March
6,000
28,500
April
23,000
105,000
May
27,000
123,000
Refer to the information provided for Cool Creams. Using the high/low method, what is the variable cost per unit? A. $4.50B. $5.50C. $4.75D. $4.32
47. Cool CreamsCool Creams provided the following data for number of ice creams produced and its total overhead costs for past five months:
Number of ice creams
Total overhead costs
January
14,000
$64,500
February
25,000
114,000
March
6,000
28,500
April
23,000
105,000
May
27,000
123,000
Refer to the information provided for Cool Creams. Using the high/low method, what is the overhead cost equation? A. Y = $6,000 + $4.75xB. Y = $1,500 + $4.50xC. Y = $7,630 + $4.32xD. Y = $1,500 + $4.32x
48. Cardinal CleanersCardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows:
Number of gallons
Total overhead costs
July
160
$6,500
August
150
6,100
September
155
6,700
October
175
7,000
November
170
6,800
Refer to the Cardinal Cleaners information above. Using the high/low method, what is the variable cost per unit? A. $25.00B. $0.03C. $900.00D. $36.00
49. Cardinal CleanersCardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows:
Number of gallons
Total overhead costs
July
160
$6,500
August
150
6,100
September
155
6,700
October
175
7,000
November
170
6,800
Refer to the Cardinal Cleaners information above. Using the high/low method, what is equation to predict total overhead costs? A. Y = $700 + $36xB. Y = $900 + $25xC. Y = $175 + $41xD. Y = $100 + $40x
50. Cardinal CleanersCardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows:
Number of gallons
Total overhead costs
July
160
$6,500
August
150
6,100
September
155
6,700
October
175
7,000
November
170
6,800
Refer to the Cardinal Cleaners information above. Cardinal uses the high/low method to predict total overhead costs. If Cardinal anticipates using 162 gallons of solvent in December, what are expected total overhead costs? A. $6,500B. $6,532C. $5,832D. $700
