Question :
Use the following to answer questions 46-48:
The TLC Motel, which : 1369878
Use the following to answer questions 46-48:
The TLC Motel, which uses the high/low method to estimate its total cost formula, gathered the following data for the first six months of its current fiscal year:
Housekeeping Costs
Number of Room Rentals
May
$19,970
1,300
June
21,500
1,560
July
23,240
1,740
August
24,760
1,890
September
18,380
1,180
October
16,930
1,020
46. The variable housekeeping cost per room rental is:
A)$14.36
B)$10.13
C)$ 9.06
D)$ 9.00
47. The fixed housekeeping cost per month is:
A)$7,750
B)$7,830
C)$7,882
D)$8,813
48. The estimated total housekeeping cost for a month with 1,400 room rentals is:
A)$22,012
B)$21,740
C)$20,350
D)$15,715
Use the following to answer questions 49-50:
Bob’s Bowlarama performed a linear regression analysis on the monthly cost of operating its concession stand, using the number of customers serviced as the cost driver. The results were as follows:
Constant
1,457.80
X coefficient
4.35
Standard error of coefficient
0.23
R-squared
0.76
49. The cost equation is:
A)Y = $4.35X + $1,457.80
B)Y = ($4.35 + $.23)X – $.76Z
C)$1,457.80 = $4.35X + $.76Y
D)$4.35Y = ($.23 + $.76)X – $1,457.80
50. The cost of operating the concession stand for a month in which the concession services 250 customers is estimated at:
A)$2,792.80
B)$2,602.80
C)$2,545.30
D)$ 627.20
51. The following is from a linear regression analysis, what is the constant in the cost
equation?
X
2,000
X coefficient
$3.50
Standard error of coefficient
0.23
R-squared
0.76
Y
$11,500
A) $9,500
B) $4,500
C) $2,714
D) $9,980
52. Given the information below from a linear regression what is the X coefficient of the
regression equation?
X
2,000
Constant
$2,500
Standard error of coefficient
0.23
R-squared
0.76
Y
$3,500
A) .50
B) 3.00
C) .75
D) 1.00
53. The “I Can’t Believe It’s Yogurt” shop sells only yogurt and only in cups. Which of the following would be a variable cost if number of customers is the cost driver?
A)Rent on the shop
B)Wages
C)Spoons
D)Electricity
54. Non Troppo Corporation has the following cost formula: Y=30(X) + $250,000. If Non Troppo sells 7,000 units, what will its total cost be?
A)$210,000
B)$250,000
C)$460,000
D)Unable to determine from the information given
55. Which of the follow statements is true about a regression’s r2?
A)The greater the r2 the greater the relationship between the independent and dependant variable.
B)An r2 that is greater than 1 means that there is more than a 100 percent relationship between the independent and dependant variable.
C)When a r2 has a negative value the independent variable is inversely related to the dependent variable.
D)When a r2 is less than 1 the greater the inverse relationship between the independent and dependant variables.
56. Which of the following activity bases would be the best cost driver for flour costs for a pizzeria?
A)Number of customers
B)Hours of operation
C)Number of employees
D)Number of pizzas
57. Largo Company’s highest and lowest monthly costs during the past year were $108,000 and $72,000, respectively. Activity levels were 5,000 hours and 3,000 hours, respectively. Determine Largo’s cost formula.
A)Y=24.60(X) + 36,000
B)Y=21.60(X) + 0
C)Y=18(X) + 18,000
D)unable to determine from the information given
