The following cost functions were developed for manufacturing overhead costs: \[\begin{array} { l l } \text { Manufacturing Overhead Cost } & \text { Cost Function } \\ \text { Electricity } & \$ 200 + \$ 20 \text { per direct labour hour } \\ \text { Maintenance } & \$ 400 + \$ 30 \text { per direct labour hour } \\ \text { Supervisors' salaries } & \$ 20000 \text { per month } \\ \text { Indirect materials } & \$ 16 \text { per direct labour hour } \end{array}\] If June production is expected to be 2,000 units requiring 3,000 direct labour hours,what would be the estimated manufacturing overhead costs?

A) $20,733 B) $152,600 C) $198,000 D) $218,600 A) $20,733 B) $152,600 C) $198,000 D) $218,600

The following information is available for maintenance costs: \[\begin{array} { l c c } \text { Month } & \text { Production Volume } & \text { Maintenance Costs } \\ \hline\text { January } & 75 & \$ 250 \\ \text { February } & 115 & 310 \\ \text { March } & 190 & 400 \\ \text { April } & 60 & 240 \\ \text { May } & 135 & 355 \end{array}\] -Refer to the figure.Using the method of least squares,what would the fixed portion of maintenance costs be (rounded to dollars)?

A) $66 B) $160 C) $166 D) $575 A) $66 B) $160 C) $166 D) $575

The Smith Company has the following cost data pertaining to the production of small desks: $\begin{array}{ccc} \text { Units Produced } & \text { Direct Labour Costs } & \text { Overhead Costs } \\ \hline 150 & \$ 1,600 & \$ 2,800 \\ 120 & 1,500 & 2,570 \\ 210 & 1,750 & 2,910 \\ 190 & 1,700 & 2,850 \\ 140 & 1,600 & 2,600 \\ \end{array}$ a.Plot the preceding direct labour costs and overhead costs using the scatterplot method.Overhead costs should be on the vertical axis. b.Compute the fixed and variable components of the overhead costs using the high-low method.

a. @#IMG-DLM& b.b = ($2,910 - $2,570)/(

Hook Company wants to develop a cost estimating equation for its monthly cost of electricity.It has the following data: $\begin{array}{lcc} \text { Month } & \text { Cost of Electricity } & \text { Direct Labour Hours } \\ \hline\text { January } & \$ 8,100 & 750 \\ \text{April} & 9,000 & 850 \\ \text { July } & 10,200 & 1,000 \\ \text { October } & 8,700 & 800 \end{array}$ Using the high-low method,which of the following is the best equation?

A) Y = $900 + $8.40X B) Y = $900 + $12.00X C) Y = $1,800 + $8.40X D) Y = $2,400 + $8.40X A) Y = $900 + $8.40X B) Y = $900 + $12.00X C) Y = $1,800 + $8.40X D) Y = $2,400 + $8.40X

The following Excel printout provides information to estimate overhead costs using linear regression: $\begin{array}{lrrrrrr} &&\text { Standard }\\ &\text { Coefficients }&\text { Error }& t \text { Stat }&P \text {-value } &\text {Lower 95 \%}&\text { Upper } 95 \%\\ \hline \text { Intercept } & 6035.987027 & 1411.05464 & 4.277642 & 0.002696 & 2782.0871 & 9289.88697 \\ \text { DLH } & 4.558482698 & 1.609683731 & 2.831912 & 0.022085 & 0.846543 & 8.27042244 \\ \text { \# setups } & 771.1028938 & 54.93418317 & 14.03685 & 6.44 \mathrm{E}-07 & 644.42436 & 897.781429 \\ \text { \# moves } & 29.9411124 & 2.874675342 & 10.41548 & 6.26 \mathrm{E}-06 & 23.312095 & 36.5701299 \end{array}$ \[\begin{array} { l r } \quad\quad\quad\quad { \text { Regression Stidistics } } \\ \hline \text { Multiple R } & 0.996584412 \\ \text { R Square } & 0.99318049 \\ \text { Adjusted R Square } & 0.990623174 \\ \text { Standard Errar } & 347.9563597 \\ \text { Observations } & 12 \\ \hline \end{array}\] a.Write the multiple regression model (round to nearest cent). b.What does the 't Stat' measure? c.What is the estimate of overhead if the department has 1,205 DLH,55 setups,and 125 moves?

a.Overhead = $6,035.99 + $4.56 (DLH)+ $

Exam 2: Cost Behaviour

The following computer printout estimated overhead costs using regression: $The following computer printout estimated overhead costs using regression: \begin{array}{|l|l|l|l|l|l|l|l|} \hline\text { Degrees}&&&&\text { Degrees}\\ \text { of}&&&&\text { of}\\ \text { Freedom } & 90 \% & 95 \% & 99 \% & \text { Freedom } & 90 \% & 95 \% & 99 \%\\ \hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \\ \hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \\ \hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \\ \hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \\ \hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \\ \hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \\ \hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \\ \hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \\ \hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \\ \hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845 \\ \hline \end{array} During the last accounting period 10,000 DLH were worked. -Refer to the figure.What is the confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level?$ Degrees Degrees of of Freedom 90\% 95\% 99\% Freedom 90\% 95\% 99\% 1 6.314 12.708 63.657 11 1.796 2.201 3.106 2 2.920 4.303 9.925 12 1.782 2.179 3.055 3 2.353 3.182 5.841 13 1.771 2.160 3.055 4 2.132 2.776 4.604 14 1.761 2.145 3.012 5 2.015 2.571 4.032 15 1.753 2.131 2.947 6 1.943 2.447 3.707 16 1.746 2.120 2.921 7 1.895 2.365 3.499 17 1.740 2.110 2.898 8 1.860 2.306 3.355 18 1.734 2.101 2.878 9 1.833 2.262 3.250 19 1.729 2.093 2.861 10 1.812 2.228 3.169 20 1.725 2.086 2.845 During the last accounting period 10,000 DLH were worked. -Refer to the figure.What is the confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level?

(Multiple Choice)

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Question 21

The following computer printout estimated overhead costs using multiple regression: During the year the company used 1,000 setup hours and 500 parts. -Refer to the figure.Which slope and intercept parameters are not significant at the 0.05 level?

(Multiple Choice)

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Question 22

Which of the following is an example of a discretionary fixed expense?

(Multiple Choice)

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Question 23

In the formula Y = F + VX,what does VX refer to?

(Multiple Choice)

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Question 24

A hospital requires one nurse for each eight patients.What type of cost is this an example of?

(Multiple Choice)

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Question 25

What is the method for understanding cost behaviour that generally classifies general ledger entries into fixed,variable,and mixed?

(Multiple Choice)

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Question 26

The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity \ 200+\ 20 per direct labour hour Maintenance \ 400+\ 30 per direct labour hour Supervisors' salaries \ 20000 per month Indirect materials \ 16 per direct labour hour If June production is expected to be 2,000 units requiring 3,000 direct labour hours,what would be the estimated manufacturing overhead costs?

(Multiple Choice)

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Question 27

What is the difference between a correlation equal to -1 and a correlation equal to 0?

(Multiple Choice)

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Question 28

What is the hypothesis test of cost parameters?

(Multiple Choice)

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Question 29

What is the term for the range of activity within which a linear cost function is valid?

(Multiple Choice)

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Question 30

The following information is available for maintenance costs: Month Production Volume Maintenance Costs January 75 \ 250 February 115 310 March 190 400 April 60 240 May 135 355 -Refer to the figure.Using the method of least squares,what would the fixed portion of maintenance costs be (rounded to dollars)?

(Multiple Choice)

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Question 31

What does cost behaviour analysis focus on?

(Multiple Choice)

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Question 32

What is the term for the efficient level of activity performance?

(Multiple Choice)

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Question 33

When are costs valid for analysis?

(Multiple Choice)

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Question 34

The Smith Company has the following cost data pertaining to the production of small desks: Units Produced Direct Labour Costs Overhead Costs 150 \ 1,600 \ 2,800 120 1,500 2,570 210 1,750 2,910 190 1,700 2,850 140 1,600 2,600 a.Plot the preceding direct labour costs and overhead costs using the scatterplot method.Overhead costs should be on the vertical axis. b.Compute the fixed and variable components of the overhead costs using the high-low method.

(Essay)

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Question 35

Hook Company wants to develop a cost estimating equation for its monthly cost of electricity.It has the following data: Month Cost of Electricity Direct Labour Hours January \ 8,100 750 April 9,000 850 July 10,200 1,000 October 8,700 800 Using the high-low method,which of the following is the best equation?

(Multiple Choice)

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Question 36

What is the confidence interval for the predicted value of Y?

(Multiple Choice)

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Question 37

Which of the following is an example of improved managerial control and decision making under the activity-based resource usage model?

(Multiple Choice)

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Question 38

Which of the following is an example of a step-fixed cost?

(Multiple Choice)

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Question 39

The following Excel printout provides information to estimate overhead costs using linear regression: Standard Coefficients Error t Stat P -value Lower 95 \% Upper 95\% Intercept 6035.987027 1411.05464 4.277642 0.002696 2782.0871 9289.88697 DLH 4.558482698 1.609683731 2.831912 0.022085 0.846543 8.27042244 \# setups 771.1028938 54.93418317 14.03685 6.44-07 644.42436 897.781429 \# moves 29.9411124 2.874675342 10.41548 6.26-06 23.312095 36.5701299 Regression Stidistics Multiple R 0.996584412 R Square 0.99318049 Adjusted R Square 0.990623174 Standard Errar 347.9563597 Observations 12 a.Write the multiple regression model (round to nearest cent). b.What does the 't Stat' measure? c.What is the estimate of overhead if the department has 1,205 DLH,55 setups,and 125 moves?

(Essay)

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Question 40

Showing 21 - 40 of 122

The following computer printout estimated overhead costs using multiple regression: During the year the company used 1,000 setup hours and 500 parts. -Refer to the figure.Which slope and intercept parameters are not significant at the 0.05 level?

Which of the following is an example of a discretionary fixed expense?

In the formula Y = F + VX,what does VX refer to?

A hospital requires one nurse for each eight patients.What type of cost is this an example of?

What is the method for understanding cost behaviour that generally classifies general ledger entries into fixed,variable,and mixed?

What is the difference between a correlation equal to -1 and a correlation equal to 0?

What is the hypothesis test of cost parameters?

What is the term for the range of activity within which a linear cost function is valid?

What does cost behaviour analysis focus on?

What is the term for the efficient level of activity performance?

When are costs valid for analysis?

What is the confidence interval for the predicted value of Y?

Which of the following is an example of improved managerial control and decision making under the activity-based resource usage model?

Which of the following is an example of a step-fixed cost?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

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