XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square = 0.85); [Y= $120,000 + $5xMhr; R-square = 0.15]; [Y=190,000+2Q; R-square=0.45]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: O a. 55% O b. None of the answers given O c. 15% O d. 85% O e. 45%

XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square = 0.85); [Y= $120,000 + $5xMhr; R-square = 0.15]; [Y=190,000+2Q; R-square=0.45]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: O a. 55% O b. None of the answers given O c. 15% O d. 85% O e. 45%

Name: XYZ Company's accountant is estimating next period's total overhead c
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed threeregression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours(Mhr), and the third is based on quantity prod

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000+ $9×DLH; R-square Y=190,000+2Q; R-square-D0.55]. How much of the variations on the overhead costs is explained 0.90]; [Y= $120,000 $5xMhr; R-square = 0.10]; by the machine hours (Mhr)? Select one: O a. 90% Ob. None of the answers given Oc.45% O6.55% Oe. 10% Next page page
Ryan: Kaylin, this also sounds good to me. Go ahead and include the carrying cost in your computation. To help in the analysis, Kaylin gathered the following data for LLHC for 2011: Tons sold: 10 Average cartons per shipment: 2 Average shipments per ton: 7 1)After receiving the analysis of LLHC, Ryan decided to expand the analysis to all products. He also had Kaylin reevaluate the way in which mill overhead was assigned to products. After the restructuring was completed, Ryan took the following actions: (a) the prices of most low-volume products were increased, (b) the prices of several high-volume products were decreased, and (c) some low-volume products were dropped. Explain why his strategy changed so dramatically.
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June (a) Power Cost $28,390 (b) 36,069 32,895 26,235 (c) 23,890 20,700 Your answer is correct. Variable power costs $ Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. eTextbook and Media Your answer is correct. Factory Machine Hours What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Fixed power costs $ eTextbook and Media 15,800 21,400 Total power cost $ 18,700 High 15,100 13,500 What is the estimated fixed power cost each month? 10,500 1.41 5,895 per factory machine hour Low 5,895 If it is estimated that 13,800 factory machine hours will be run in July, what is the expected total power cost for July?
Floryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unitMaterials = P3 per unitSupervision = P5,000Power = 300 + P0.25 per unit + P0.50 per machine hourFactory supplies = P250 + P0.75 per unitDepreciation—equipment = P1 per machine hourDepreciation—building = P10,000During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours.Required: Prepare a schedule of the production costs to be incurred during the next period.
The Cost Officer of a company that manufactures a product came up with the following information: Direct materials: 30% of Sales Direct wages (Variable): 20% of Sales Production overhead (Fixed): Same as direct wages Production overhead (Variable): 25% of direct wages Administration overhead (Fixed): 10 % of Sales Selling overheads (Note 1): Same as Production overhead (Variable) Note 1: The behaviour of selling overhead in relation to changes in sales volume (units) is as follows: Normal activity: M65 000 90% of normal activity: M63 050 110% of normal activity: M66 950. The company uses an absorption costing system to value inventory. The predetermined absorption rates are based on normal level of activity. During November and December, 2021 of the financial year, the production and sales expressed as percentages of normal activity, were as follows: November December Sales 80% 100% Production 100% 80% The actual selling price and variable costs per unit were as budgeted. It is the…
Texoma Trucking Company is exploring different prediction models that can be used to forecast indirect labor costs. One independent variable under consideration is machine hours. Following are matching observations on indirect labor costs and machine hours for the past six months: Machine hours Indirect labor costs $20,000 $24,000 $17,000 $22,000 $13,000 $14,000 Month 1 300 2 400 3 240 4 370 5 200 6 225 Using HIGH-LOW method, determine the following: 1. The total flexible cost formula? 2. The total indirect cost labor of Texoma Trucking Company if on the 10th month, they incurred 390 machine hours from operation.
A manufacturing company has provided the following cost data for a recent period: Direct materials = PhP400,000 Manufacturing head = PhP600,000 Direct labor = PhP500,000 Increase in work-in-process=PhP200,000 Calculate the prime cost for the period. Show the solution.
Based on the image below for a manufacturing company, the correct statement is A. line b graphs total fixed costs B. point c represents the point at which the marginal contribution per unit increases C. line d graphs total costs D. area e (between lines b and d) represents the contribution margin
XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr). and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square 0.90]; [Y= $120,000 + $5xMhr; R-square 0.10]: [Y=D190,000+2Q; R-square%3D0.55]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: Oa 45% Ob. None of the answers given O c 10% O a. 5596 Ce. 90%,
The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs = +xBillable Hours X Monthly Overhead Costs and Billable Hours Data (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Overhead Costs Billable Hours 0 $315,000 3,000 $365,000 4,000 $395,000 5,000 $447,000 6,000 $530,000 7,000 $550,000 8,000
The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)
Barkoff Enterprises, which uses the high-low method to analye cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Machine Hours 800 720 Month Utilities 8,700 8360 8,950 9,360 January February March S10 April May 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. 8) S5,100. O54,760. D) $3,764. E) None of the answers is correct.