FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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SomethingNew is a small one-person company that provides elaborate and
imaginative wedding cakes to order for very large wedding receptions. The owner of
the company would like to understand the cost structure of the company and has
compiled the following records of activity and costs incurred. The owner believes that
the number of weddings catered is the best measure of activity.
Мonth
Weddings
Costs Incurred
January
February
3
Р3,800
Р3,600
March
P4,000
P4,300
April
Мay
9.
12
P4,500
June
20
P5,200
Using the least-squares regression method, estimate the variable cost per wedding and
the total fixed cost per month. (Round off the variable cost per wedding to the nearest
cent and the total fixed cost to the nearest dollar.)
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Transcribed Image Text:SomethingNew is a small one-person company that provides elaborate and imaginative wedding cakes to order for very large wedding receptions. The owner of the company would like to understand the cost structure of the company and has compiled the following records of activity and costs incurred. The owner believes that the number of weddings catered is the best measure of activity. Мonth Weddings Costs Incurred January February 3 Р3,800 Р3,600 March P4,000 P4,300 April Мay 9. 12 P4,500 June 20 P5,200 Using the least-squares regression method, estimate the variable cost per wedding and the total fixed cost per month. (Round off the variable cost per wedding to the nearest cent and the total fixed cost to the nearest dollar.)
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