(Appendix 2A)Below Are Cost and Activity Data for a Particular

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The Answer is The solution using Microsoft Excel functions is:
Variable cost = Slope = $2.55
Fixed cost = Intercept = $160.85
Therefore, the cost formula is $160.85 per period plus $2.55 per unit of activity or:
Y = $160.85 + $2.55X
The solution using the formulas in the text is:
n = 4
sumX = 183
sumY = 1, 110
sumXY = 50, 866
sumX^2 = 8, 405
b = [n(sumXY)- (sumX)(sumY)]/[n(sumX^2)- (sumX)^2]
= [4(50, 866)- (183)(1, 110)]/[4(8, 405)- (183)^2]
= $2.55 (rounded to nearest whole cent)
a = [(sumY)- b(sumX)]/n
= [(1, 110)- 2.55(183)]/4
= $161 (rounded to nearest whole dollar)
Cost formula: Y = $161 + $2.55X.

(Appendix 2A)Below Are Cost and Activity Data for a Particular

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Correct Answer:
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(Appendix 2A)Below Are Cost and Activity Data for a Particular

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified