99. You run a regression analysis and receive the following results:
Multiple R
.39429
R Square
.15547
Adjusted R Square
.14964
Standard Error
.44416
Analysis of Variance
DF
Sum of Squares
Mean Square
Regression
1
5.26588
5.26588
Residual
145
28.60536
.19728
F = 26.69262
Signif F = .0000
Variables in the Equation
Variable
Coefficients
Standard error
t Stat
P-value
X Variable 1
11.0300
.021000
5.166
.0000
Intercept
8833.0700
.090000
9.751
.0000
Required:
A.
What is the fixed cost in this regression analysis?
B.
What is the variable cost per unit?
C.
Prepare the cost equation based upon these results.
D.
Does this regression equation “fit” the data well? What information did you examine to answer this question?
100. Pearson Products believes one of its costs is a mixed cost and has run a regression analysis which shows the following:
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.963711945
R Square
0.928740713
Adjusted R Square
0.916864165
Standard Error
946.0983069
Observations
8
ANOVA
df
SS
MS
F
Significance F
Regression
1
69996575.46
69996575.46
78.19955153
0.000116235
Residual
6
5370612.038
895102.0063
Total
7
75367187.5
Coefficients
Standard Error
t Stat
P-value
Intercept
11568.56000
1352.390000
8.554149469
0.000140059
X Variable 1
1.9800000
0.223900000
8.843051031
0.000116235
Required:
A.
Write the equation to predict estimated total mixed costs.
B.
If 1,000 units are produced, what will be total mixed costs?
C.
What does the “R Square” number tell Pearson? Interpret the “R Square” data for Pearson.
101. Noble Inc. documented the number of units produced as well as maintenance costs for the past five months as follows:
Number of units
Total overhead costs
October
120,000
$ 6,200
November
180,000
10,000
December
100,000
6,000
January
110,000
8,000
February
135,000
9,000
Noble uses the high/low method of estimating mixed costs.Required:
A.
What is the equation to predict estimated total overhead costs?
B.
If the company expects to produce 150,000 units in March, what will be the estimated total overhead costs?
102. Reliable Movers Inc. documented the miles driven and total moving van costs for the past five months as follows:
Number of miles
Total vehicle costs
January
3,000
$4,800
February
3,500
5,200
March
5,000
6,100
April
4,000
5,000
May
6,000
6,000
In order to budget total vehicle costs for the upcoming summer months, Reliable wishes to estimate total vehicle costs using the high/low method.Required:
A.
What is the equation to predict estimated total vehicle costs?
B.
If the company expects to drive 9,000 miles in June, what will be the estimated total vehicle costs?
103. A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit from the special project?
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