The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $24,900 5,250 24,000 5,500 36,400 7,500 44,160 9,750 45,000 9,500 What is the estimated total cost at an operating level of 8,000 hours?

The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $24,900 5,250 24,000 5,500 36,400 7,500 44,160 9,750 45,000 9,500 What is the estimated total cost at an operating level of 8,000 hours?

Name: The Barnett Company has assembled the following data pertaining to cer
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Description: The Barnett Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Barnett Company has heard about a method of measuring cost functions called the high-low method and has dec

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 10P: The management of Hartman Company is trying to determine the amount of each of two products to...

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The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department? c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is 18 in department A, 22.50 in department B, and 12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase in the total contribution to profit if overtime is used?
The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $100,000 3,500 61,000 2,000 85,000 2,600 78,200 2,450 91,000 3,000 110,400 3,900 106,000 3,740 93,000 3,380 a) Calculate the variable cost per hour b) Calculate the total fixed costs c) Write the equation which measures the cost behavior of the costs d) Calculate the operating costs for 3,750 hours.
The Mortise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $40,000 3,600 February 38,500 3,000 March 36,280 3,300 April 38,000 3,500 May 69,850 5,850 June 45,000 4,250 a. What is the slope coefficient? b. What is the constant for the estimated cost equation? c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,100 hours?
The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 3,500 61,o00 2,000 85,000 2,600 78,200 2,450 91,000 3,000 110,400 3,900 106,000 3,740 93,000 3,380 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behavior of the costs Calculate the operating costs for 3,750
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $44,900 3,500 February 24,400 2,000 March 31,280 2,450 April 36,400 3,000 May 44,160 3,900 June 42,400 3,740How is the cost function stated? Question 12 options: a) y = $3,600 + $10.40X b) y = $10,112 + $8.64X c) y = $26,672 + $1.84X d) y = $21,360 + $10.40
The Connors Company has assembled the following data pertaining to certain costs that cannot beeasily identified as either fixed or variable. Connors Company has heard about a method of measuringcost functions called the high-low method and has decided to use it in this situation.A company has heard about a method of measuring cost functions called the regression analysis and hasdecided to use it in this situation.Cost Hours$23,000 5,000$26,000 6,450$34,600 7,650$42,000 10,000$38,000 9,350What is the estimated total cost at an operating level of 9,000 hours?A) $34,200B) $38,200C) $41,400D) $37,800 Work question #7 using regression analysis
4. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation eege d) Cost $100,000 61,000 85,000 78,200 91,000 110,400 106,000 93,000 Hours 3,500 2,000 2,600 2,450 3,000 3,900 3,740 3,380 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behaviour of the costs Calculate the operating costs for 3,750 hours.
5. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 61,000 85,000 78,200 3,500 2,000 2,600 2,450 3,000 91,000 110,400 106,000 3,900 3,740 3,380 93,000 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behaviour of the costs Calculate the operating costs for 3,750 hours.
Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
Company has decided to use the high-low method to estimate the total cost andthe fixed and variable cost components of the total cost. The data for various levels ofproduction are as follows:Units Produced Total Costs8,100 $525,00011,250 630,00018,100 690,000 Please, calculate this questionsa. Determine the variable cost per unit and the total fixed cost.b. Based on part (a), estimate the total cost for 15,000 units of production.
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:Units Produced Total Costs80,000 $25,200,00099,000 25,220,000130,000 31,770,000a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.
*(A)The Mortise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.Month Cost HoursJanuary $40,000 3,600 February 38,500 3,000 March 36,280 3,300 April 38,000 3,500 May 69,850 5,850 June 45,000 4,250Required:a. What is the slope coefficient?b. What is the constant for the estimated cost equation?c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,100 hours? *(B) The XYY company has received an initial order for eight of its products (GGG). The information about products as follows: - Direct material cost per (GGG) $ 100,000 - Direct- assembly labor time for first GGG 4,000 labor-hours - Learning curve for assembly labor time per GGG 80% cumulative average time- Direct -assembly labor cost $ 50 per hour-…