Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Controller completed a cost study of the firms' material handling department in which he used work measurement to quantify departments' activity. Factor unit used in the work measurement study was hundreds of kg of equipment unloaded or loaded at the company's loading dock.
Month units of activity material handling dpt cost
In hundreds of kg
January 1800 11700
February 1600 11300
March 1300 11250
April 1000 10200
May 2200 11100
June 2400 12550
July 2000 12000
August 1800 11400
Sep 2600 12120
Oct 1100 11050
Nov 1200 11350
Dec 1400 11350

1. Draw a scatter diagram of the cost data for the material handling department.
2. Fit a cost line to the diagram.
3. Estimate variable and fixed components of the dpt cost behavior pattern using the cost line.
4. Specify and equation to express the department cost behavior.
5. Estimate material handling department cost behavior using the high low method.
6. describe why the cost estimates developed in 4 and 5 differ.
7. Predict company's material handling cost for a month when 2250 units of activity are recorded.
8. Construct excel spreadsheet to perform a least squares regression Estimate variable and fixed cost components in the company's material handling dpt costs.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926185

Have any Question? 


Related Questions in Basic Finance

What is the goal with regard to managing accounts payable

What is the goal with regard to managing accounts payable as it relates to the cash conversion cycle? Briefly describe the process involved in managing the accounts payable function.

A scarf company built a new parking garage in a business

A Scarf Company built a new parking garage in a business district. For a random sample of 100 days, daily fees collected averaged $1,800, with a standard deviation of $500. Construct a 90% confidence interval estimate of ...

1 how many funds will be used by a state or local

1. How many funds will be used by a state or local government? 2. The budget for a state or local government is not as binding as a budget for a commercial business. Comment. 3. Which organization provides a service wher ...

1 what fraction of us public companies pays regular cash

1. What fraction of U.S. public companies pays regular cash dividends today? How has this changed over the past fifty years? 2. How does the fraction of NASDAQ-listed companies that regularly pay cash dividends compare w ...

Anne has been researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per share. In this case, what interest rate, in perce ...

1 selecting a bank steve just received his first paycheck

1. Selecting a Bank. Steve just received his first paycheck and wants to open a checking account. There are five banks in his hometown. What factors should Steve consider when choosing a bank? 2. Influence of Interest Ra ...

Assignment lasa- capital budgeting techniquesas a financial

Assignment: LASA- Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have ag ...

1 comment on the following proposition using floating-rate

1. Comment on the following proposition: Using floating-rate debt eliminates interest rate risk (the risk that interest payment amounts will change in the future) for both the borrower and the lender. 2. What purpose do ...

1 in what sense could one argue that if managers make

1. In what sense could one argue that if managers make decisions using breakeven analysis, they are not maximizing shareholder wealth? How can breakeven analysis be modified to solve this problem? 2. Explain the differen ...

Toynbspcorpnbspis analyzing its optimal capital structure

Toy Corp. is analyzing its optimal capital structure. Currently, Toy's capital structure includes 10% debt and the company is planning to triple (3x) its debt capitalization.  Assume that the current risk-free rate is 3. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen