Question :
41. George’s Ice Cream Shop believes most of its utilities costs : 1295552
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 of gallons 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
374.4318
X Variable 1
18.29545
Comparing the high/low method to regression analysis, to the nearest dollar, which of the following formulas would be the best predictor of total estimated mixed costs? A. Y = $300 + $20xB. Y = $374 + $18xC. Y = $900 + $30xD. Y = $18 + $374x
42. Hill Top Products has run a regression analysis comparing total production and utilities’ costs 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. 86 percent of the variation in utilities costs is not 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. Mr. Quik Printers documented the number of copies it made for customers as well as total overhead costs for the past five months as follows:
Number of copies
Total overhead costs
October ————-
230,000
$7,400
November ———-
240,000
7,500
December ———-
280,000
8,000
January ————-
265,000
7,700
February ———–
248,000
7,550
Refer to Mr. Quik Printers information above. Using the high/low method, what is the variable cost per unit? A. $ .012B. $ .030C. $33.11D. $83.33
47. Mr. Quik Printers documented the number of copies it made for customers as well as total overhead costs for the past five months as follows:
Number of copies
Total overhead costs
October ————-
230,000
$7,400
November ———-
240,000
7,500
December ———-
280,000
8,000
January ————-
265,000
7,700
February ———–
248,000
7,550
Refer to Mr. Quik Printers information above. Using the high/low method, what is the overhead cost equation? A. Y = $400 + $.030xB. Y = $4,640 + $.012xC. Y = $7,630 + $.001xD. Y = $5,566 + $.008x
48. Cardinal 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. $ 25B. $ .03C. $900D. $ 36
49. Cardinal 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 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 200 gallons of solvent in December, what are expected total overhead costs? A. $9,778B. $7,900C. $8,133D. $8,000
