Question

In: Accounting

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells...

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield’s operating information for the first six months of the year follows:

Month Number of Bottles Sold Operating Cost
January 1,060 $ 10,780
February 1,410 15,730
March 1,790 15,990
April 2,500 19,530
May 3,490 27,740
June 3,790 34,890

Required:
3.
Using the high-low method, calculate Garfield’s total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number.)



4. Perform a least-squares regression analysis on Garfield’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.)

Coefficients
Intercept
X Variable 1



5. Determine how well this regression analysis explains the data. (Round you regression statistics to three decimal places and your percentage answer to the nearest whole number.)

Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
From the regression output, number of bottles explains about % of the variability in Garfield’s total cost.


6. Using the regression output, create a linear cost equation (y = a + bx) for estimating Garfield’s operating costs. (Round your answers to 3 decimal places.)

Total Cost = + (Number of Bottles)

Solutions

Expert Solution


Related Solutions

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells...
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield’s operating information for the first six months of the year follows: Month Number of Bottles Sold Operating Cost January 1,060 $ 10,780 February 1,410 15,730 March 1,790 15,990 April 2,500 19,530 May 3,490 27,740...
A company that manufactures and sells consumer video cameras sells two versions of their popular hard...
A company that manufactures and sells consumer video cameras sells two versions of their popular hard disk​ camera, a basic camera for ​$500​, and a deluxe version for ​$1200. About 55​% of customers select the basic camera. Of​ those, 30​% purchase the extended warranty for an additional ​$100. Of the people who buy the deluxe​ version, 50​% purchase the extended warranty. Complete parts a through d below. ​a) Sketch the probability tree for total purchases. Warranty 0.3 Basic and Warranty...
The Fido Dog Food Company wishes to introduce a new brand of dog biscuits (composed of...
The Fido Dog Food Company wishes to introduce a new brand of dog biscuits (composed of chicken and liver-flavored biscuits) that meets certain nutritional requirements. The liver-flavored biscuits contain 1 unit of nutrient A and 4 units of nutrient B, while the chicken-flavored ones contain 2 unit of nutrient A and 2 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.   Production Costs Total Cost Direct materials $ 2,900 Direct labor 7,100 Utilities ($110 fixed) 570 Supervisor’s salary 2,600 Maintenance ($280 fixed) 500 Depreciation 900 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–2,300 units, and monthly production costs for the production of 1,900 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 3,100 Direct labor 7,500 Utilities ($130 fixed) 590 Supervisor’s salary 2,800 Maintenance ($330 fixed) 480 Depreciation 700 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,900 units, and monthly production costs for the production of 1,600 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 7,300 Utilities ($150 fixed) 560 Supervisor’s salary 3,400 Maintenance ($300 fixed) 540 Depreciation 750 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.    Production Costs Total Cost Direct materials $ 3,100 Direct labor 7,100 Utilities ($130 fixed) 590 Supervisor’s salary 3,500 Maintenance ($310 fixed) 540 Depreciation 850 Required: 1. Identify...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,800 units, and monthly production costs for the production of 1,300 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.   Production Costs Total Cost Direct materials $ 2,700 Direct labor 7,100 Utilities ($110 fixed) 600 Supervisor’s salary 3,100 Maintenance ($320 fixed) 510 Depreciation 700 Suppose it sells...
Question 1( 25 marks) Jeff owns a business which makes and sells a well-known brand of...
Question 1( 25 marks) Jeff owns a business which makes and sells a well-known brand of peach brandy (“the Business”). Jeff holds a business name, and a trademark for a logo, associated with the Business’s brand of peach brandy. The Business sources fruit from local producers. The Business is operated on land which is also owned by Jeff. Jeff decides it is time to sell the Business and is introduced to Tina who is interested in buying the Business. Jeff...
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals...
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Work in process, January 1 — Gallons started 900,000 Gallons transferred out 756,000 Direct materials cost $900,000 Direct labor cost $2,000,000 Overhead applied $1,571,200 Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT