FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Furlan Printing Corporation, a book printer, has provided the following data:
May
June
July
August
September
October
November
December
Titles
Printed
29
30
42
24
40
Variable cost
Fixed cost
38
39
35
Press Setup Cost
$ 3,185
$ 3,218
$ 3,703
$ 3,011
$ 3,622
$ 3,566
$ 3,568
$3,250
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. (Round the
"Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.)
per title printed
per month
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Transcribed Image Text:Furlan Printing Corporation, a book printer, has provided the following data: May June July August September October November December Titles Printed 29 30 42 24 40 Variable cost Fixed cost 38 39 35 Press Setup Cost $ 3,185 $ 3,218 $ 3,703 $ 3,011 $ 3,622 $ 3,566 $ 3,568 $3,250 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. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) per title printed per month
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