Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 33E
1.
To determine
Construct an excel spreadsheet to use the excel commands to perform a least square regression. Estimate the cost behavior of the airline’s on-board flight service, and express the cost behavior in equation form.
2.
To determine
Use excels to calculate and interpret the R2 value for the regression.
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Convert the accompanying database to an Excel table to find:
a.The total cost of all orders.
b.Thetotal quantity of airframe fasteners purchased.
c. The total cost of all orders placed with Manley Valve.
Question content area bottom
Part 1
a. The total cost of all orders is
$?????? enter your response here.
The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance:
(Click to view the information.)
Required
1. Estimate the cost function for maintenance.
2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain.
Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.)
Maintenance costs =
Maintenance costs =
+(
+(
X
X
Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain.
the relevant range, not at cost levels
the relevant range. If there are no months with zero
The cost function in requirement 1 is an estimate of how costs behave
machine-hours represented in the maintenance account, data in that account
function provides the best available starting point for a straight line that approximates how a cost behaves
be used to…
Listed below are costs of providing an airline service. Classify each cost as (a) either variable (V) or fixed (F) and (b) either direct (D) or indirect (I). Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Cost 1. Advertising 2. Beverages served on planes . 3. Regional vice president salary . 4. Depreciation (straight-line) on ground equipment . 5. Fuel used in planes 6. Flight attendant wages 7. Pilot wages . 8. Aircraft maintenance manager salary .
Chapter 6 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 6 - Describe the importance of cost behavior patterns...Ch. 6 - Define the following terms, and explain the...Ch. 6 - Suggest an appropriate activity base (or cost...Ch. 6 - Draw a simple graph of each of the following types...Ch. 6 - Explain the impact of an increase in the level of...Ch. 6 - Explain why a manufacturers cost of supervising...Ch. 6 - Explain the impact of an increase in the level of...Ch. 6 - Prob. 8RQCh. 6 - Indicate which of the following descriptions is...Ch. 6 - Prob. 10RQ
Ch. 6 - What is meant by a learning curve? Explain its...Ch. 6 - Suggest an appropriate independent variable to use...Ch. 6 - What is an outlier? List some possible causes of...Ch. 6 - Explain the cost estimation problem caused by...Ch. 6 - Describe the visual-fit method of cost estimation....Ch. 6 - What is the chief drawback of the high-low method...Ch. 6 - Explain the meaning of the term least squares in...Ch. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - List several possible cost drivers that could be...Ch. 6 - Prob. 21RQCh. 6 - Prob. 22ECh. 6 - The behavior of the annual maintenance and repair...Ch. 6 - WMEJ is an independent television station run by a...Ch. 6 - Jonathan Macintosh is a highly successful...Ch. 6 - Jonathan Macintosh is a highly successful...Ch. 6 - The Iowa City Veterinary Laboratory performs a...Ch. 6 - Chillicothe Meat Company produces one of the best...Ch. 6 - Rio Bus Tours has incurred the following bus...Ch. 6 - Prob. 31ECh. 6 - Prob. 32ECh. 6 - Prob. 33ECh. 6 - Gator Beach Marts, a chain of convenience grocery...Ch. 6 - For each of the cost items described below, choose...Ch. 6 - The following selected data were taken from the...Ch. 6 - Antioch Extraction, which mines ore in Montana,...Ch. 6 - Nations Capital Fitness, Inc. operates a chain of...Ch. 6 - The Allegheny School of Music has hired you as a...Ch. 6 - Prob. 40PCh. 6 - (Note: Instructors who wish to cover all three...Ch. 6 - Refer to the original data in the preceding...Ch. 6 - Shortly after being hired as an analyst with...Ch. 6 - The controller of Chittenango Chain Company...Ch. 6 - Dana Rand owns a catering company that prepares...Ch. 6 - Prob. 48PCh. 6 - Earth and Artistry, Inc. provides commercial...Ch. 6 - Prob. 51CCh. 6 - Refer to the data and accompanying information in...
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