Question 1

The R2 (i.e. ,R-squared) indicates the proportion of a mixed cost that is variable.

Accepted Answer

A) True 
 B)False  False

Question 2

Magnano Inc.'s inspection costs are listed below:   Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:

Accepted Answer

A) $3.51 
B) $3.49 
C) $4.93 
D) $3.54 
A) $3.51 
B) $3.49 
C) $4.93 
D) $3.54 D

Question 3

Meleski Corporation's recent utility costs are listed below:   Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:

Accepted Answer

A) $4.40 
B) $4.79 
C) $3.47 
D) $3.37 
A) $4.40 
B) $4.79 
C) $3.47 
D) $3.37 D

Question 4

Magnano Inc.'s inspection costs are listed below:   Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the fixed component of inspection cost per month is closest to:

Accepted Answer

A) $4,400 
B) $1,290 
C) $4,585 
D) $1,318 
A) $4,400 
B) $1,290 
C) $4,585 
D) $1,318

Question 5

Meleski Corporation's recent utility costs are listed below:   Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to:

Accepted Answer

A) $4,649 
B) $5,028 
C) $16,975 
D) $16,850 
A) $4,649 
B) $5,028 
C) $16,975 
D) $16,850

Question 6

Your boss would like you to estimate the fixed and variable components of a particular cost.Actual data for this cost over four recent periods appear below.   Using the least-squares regression method,what is the cost formula for this cost?

Accepted Answer

A) Y = $24.51 + $1.08X 
B) Y = $10.33 + $1.92X 
C) Y = $0.00 + $2.32X 
D) Y = $15.80 + $1.70X 
A) Y = $24.51 + $1.08X 
B) Y = $10.33 + $1.92X 
C) Y = $0.00 + $2.32X 
D) Y = $15.80 + $1.70X

Question 7

Recent maintenance costs of Pavelko Corporation are listed below:   Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the fixed component of maintenance cost per month is closest to:

Accepted Answer

A) $7,826 
B) $6,036 
C) $7,950 
D) $6,199 
A) $7,826 
B) $6,036 
C) $7,950 
D) $6,199

Question 8

Mccatty Inc.maintains a call center to take orders,answer questions,and handle complaints.The costs of the call center for a number of recent months are listed below:   Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken.
Required:
Estimate the variable cost per call and fixed cost per month using the least-squares regression method.

Accepted Answer

The solution using Microsoft Excel funct

Question 9

The management of Archie Corporation would like to better understand the behavior of the company's warranty costs.Those costs are listed below for a number of recent months:   Management believes that warranty cost is a mixed cost that depends on the number of product returns.
Required:
Estimate the variable cost per product return and the fixed cost per month using the least-squares regression method.

Accepted Answer

The solution using Microsoft Excel funct

Question 10

Below are cost and activity data for a particular cost over the last four periods.Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.   Required:
Using the least-squares regression method,estimate the cost formula for this cost.

Accepted Answer

n = 4
sumX = 180
sumY = 1,382
sumXY = 62

Question 11

Stamp Printing Corp. ,a book printer,has provided the following data:   Management believes that the press setup cost is a mixed cost that depends on the number of titles printed.(A specific book that is to be printed is called a "title".Typically,thousands of copies will be printed of each title.Specific steps must be taken to setup the presses for printing each title- for example,changing the printing plates.The costs of these steps are the press setup costs. )
Required:
Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method.

Accepted Answer

The solution using Microsoft Excel funct

Question 12

Recent maintenance costs of Pavelko Corporation are listed below:   Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:

Accepted Answer

A) $3.26 
B) $13.45 
C) $2.00 
D) $2.96 
A) $3.26 
B) $13.45 
C) $2.00 
D) $2.96

Question 13

The management of Smoots Corporation would like for you to analyze their repair costs,which are listed below:   Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:

Accepted Answer

A) $4.64 per machine-hour plus $34,603 per month 
B) $2.09 per machine-hour plus $19,018 per month 
C) $2.79 per machine-hour plus $13,787 per month 
D) $2.00 per machine-hour plus $19,649 per month 
A) $4.64 per machine-hour plus $34,603 per month 
B) $2.09 per machine-hour plus $19,018 per month 
C) $2.79 per machine-hour plus $13,787 per month 
D) $2.00 per machine-hour plus $19,649 per month

Question 14

Delreal Inc.'s inspection costs are listed below:   Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method,the estimates of the variable and fixed components of inspection cost would be closest to:

Accepted Answer

A) $20.27 per unit plus $5,905 per month 
B) $44.44 per unit plus $10,867 per month 
C) $20.68 per unit plus $5,807 per month 
D) $20.57 per unit plus $5,837 per month 
A) $20.27 per unit plus $5,905 per month 
B) $44.44 per unit plus $10,867 per month 
C) $20.68 per unit plus $5,807 per month 
D) $20.57 per unit plus $5,837 per month

The R² (i.e. ,R-squared) indicates the proportion of a mixed cost that is variable.

Magnano Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. -Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:

Meleski Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:

Magnano Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. -Using the least-squares regression method,the estimate of the fixed component of inspection cost per month is closest to:

Meleski Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to:

Your boss would like you to estimate the fixed and variable components of a particular cost.Actual data for this cost over four recent periods appear below. Using the least-squares regression method,what is the cost formula for this cost?

Recent maintenance costs of Pavelko Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the fixed component of maintenance cost per month is closest to:

Recent maintenance costs of Pavelko Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:

Delreal Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method,the estimates of the variable and fixed components of inspection cost would be closest to:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Variable Costing: a Tool for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters

Exam 16: Least-Squares Regression Computations

The R2 (i.e. ,R-squared) indicates the proportion of a mixed cost that is variable.

Magnano Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. -Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:

Meleski Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:

Magnano Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced. -Using the least-squares regression method,the estimate of the fixed component of inspection cost per month is closest to:

Meleski Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to:

Your boss would like you to estimate the fixed and variable components of a particular cost.Actual data for this cost over four recent periods appear below. Using the least-squares regression method,what is the cost formula for this cost?

Recent maintenance costs of Pavelko Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the fixed component of maintenance cost per month is closest to:

Recent maintenance costs of Pavelko Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. -Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:

Delreal Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method,the estimates of the variable and fixed components of inspection cost would be closest to:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Variable Costing: a Tool for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters

The R² (i.e. ,R-squared) indicates the proportion of a mixed cost that is variable.