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Data for Acct. 306 Assessment Project—Spring 2017 Queens Lamps Inc specializes in manufacturing custom designed lamps....


Data for Acct. 306 Assessment Project—Spring 2017
Queens Lamps Inc specializes in manufacturing custom designed lamps. It is a low volume manufacturer.
Its cost data for four years is as follows.
Sales Price Per Unit: $400.00
Variable Selling and General Expenses per unit $12.00
Monthly Fixed Selling and General Expenses $2,000
Observation Number Month Year Number of Production Batches Units Produced Manufacturing Overhead Machine Hours Direct Material Cost Direct Labor Cost
1 Jan 20X1 8 121 10,991 1,557 3,703 4,646
2 Feb 20X1 4 103 9,724 1,259 3,059 4,408
3 Mar 20X1 5 82 9,830 970 2,411 3,674
4 Apr 20X1 7 123 11,006 1,631 3,653 4,723
5 May 20X1 10 95 10,413 1,235 2,850 4,028
6 Jun 20X1 5 100 10,403 1,391 2,970 4,280
7 Jul 20X1 11 125 11,307 1,479 3,750 5,750
8 Aug 20X1 5 68 9,716 955 2,060 2,530
9 Sep 20X1 3 130 10,310 1,808 3,822 4,992
10 Oct 20X1 6 80 9,622 988 2,448 3,520
11 Nov 20X1 4 124 10,237 1,483 3,683 4,613
12 Dec 20X1 10 128 11,120 1,597 3,802 5,530
13 Jan 20X2 5 121 10,311 1,715 3,630 4,453
14 Feb 20X2 7 71 10,103 951 2,173 3,039
15 Mar 20X2 7 122 10,777 1,507 3,587 4,197
16 Apr 20X2 10 35 9,822 473 1,050 1,330
17 May 20X2 4 116 10,527 1,493 3,480 4,083
18 Jun 20X2 8 44 9,331 578 1,294 2,006
19 Jul 20X2 11 71 10,697 886 2,087 2,698
20 Aug 20X2 6 57 9,767 771 1,727 2,440
21 Sep 20X2 10 56 10,241 692 1,697 2,419
22 Oct 20X2 5 73 9,695 940 2,146 3,066
23 Nov 20X2 6 128 10,746 1,498 3,802 5,171
24 Dec 20X2 9 114 10,790 1,615 3,420 4,697



Acc 306 Quantitative Methods Project
Cost Behavior Analysis using Regression

GENERAL INSTRUCTIONS

Data should be analyzed in Excel. Everything should be appropriately labeled.



1. Break-Even Analysis: Calculate the following, assuming Simple Regression (show work in the Break-Even tab):
a. What is the average per Unit Direct Materials Cost?
b. What is the average per Unit Direct Labor Cost?
c. Assume variable General and Administrative expenses are $12 per unit. What is the total variable cost per unit?
d. Assume total fixed General and Administrative expenses are $2,000 per month. What is the total fixed cost per month?
e. Assume sales price per unit is $400. What is the Contribution Margin Per Unit?
f. What is the Break Even Point in Units?



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