An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.
| Production
Volume (units) |
Total Cost ($) |
|---|---|
| 400 | 4,000 |
| 450 | 4,900 |
| 550 | 5,400 |
| 600 | 6,000 |
| 700 | 6,300 |
| 750 | 6,900 |
(a)
Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. (Round your numerical values to two decimal places.)
ŷ = _____
(b)
What is the variable cost (in dollars) per unit produced?
$ _____
(c)
Compute the coefficient of determination. (Round your answer to three decimal places.)
What percentage of the variation in total cost can be explained by production volume? (Round your answer to one decimal place.)
________%
(d)
The company's production schedule shows 650 units must be produced next month. Predict the total cost (in dollars) for this operation. (Round your answer to the nearest cent.)
$ _______
In: Statistics and Probability
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.
| Production
Volume (units) |
Total Cost ($) |
|---|---|
| 400 | 4,000 |
| 450 | 5,000 |
| 550 | 5,500 |
| 600 | 5,800 |
| 700 | 6,500 |
| 750 | 7,000 |
(a)
Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. (Round your numerical values to two decimal places.)
ŷ =
(b)
What is the variable cost (in dollars) per unit produced?
$
(c)
Compute the coefficient of determination. (Round your answer to three decimal places.)
What percentage of the variation in total cost can be explained by production volume? (Round your answer to one decimal place.)
%
(d)
The company's production schedule shows 650 units must be produced next month. Predict the total cost (in dollars) for this operation. (Round your answer to the nearest cent.)
$
In: Statistics and Probability
Question 21
In 2012, MegaStores reported net income of $5.7 billion, net sales of $164.7 billion, and average total assets of $61.0 billion. What is MegaStores' asset turnover ratio?
Question 21 options:
|
A. 0.37 times |
|
|
B. 0.09 times |
|
|
C. 2.7 times |
|
|
D. 10.7 times |
Question 22
On January 2, 2012, York Corp. replaced its boiler with a more efficient one. The following information was available on that date:
|
Purchase price of new boiler |
$170,000 |
|
Carrying amount of old boiler |
$10,000 |
|
Fair value of old boiler |
$4,000 |
|
Installation cost of new boiler |
$20,000 |
The old boiler was sold for $4,000. What amount should York capitalize as the cost of the new boiler?
Question 22 options:
|
A. $190,000 |
|
|
B. $186,000 |
|
|
C. $180,000 |
|
|
D. $170,000 |
Question 23
Matile Co. purchased machinery that was installed and ready for use on January 3, 2012, at a total cost of $115,000. Salvage value was estimated at $15,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2013, Matile should record depreciation expense on this machinery of ______________.
Question 23 options:
|
A. $24,000 |
|
|
B. $27,600 |
|
|
C. $30,000 |
|
|
D. $46,000 |
Question 24
On February 1, 2012, Nelson Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2012. Costs incurred during this period are listed below:
|
Demolition of old building |
$20,000 |
|
Architect's fees |
$35,000 |
|
Legal fees for title investigation and purchase contract |
$5,000 |
|
Construction costs |
$1,290,000 |
(Salvaged materials resulting from demolition were sold for
$10,000.)
Nelson should record the cost of the land and new building,
respectively, as ________________.
Question 24 options:
|
A. $275,000 and $1,315,000 |
|
|
B. $260,000 and $1,330,000 |
|
|
C. $260,000 and $1,325,000 |
|
|
D. $265,000 and $1,325,000 |
Question 25
On January 1, 2012, Graham Company purchased a new machine for $2,800,000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $100,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, 2013, net of accumulated depreciation, for this machine?
Question 25 options:
|
A. $2,260,000 |
|
|
B. $1,780,000 |
|
|
C. $1,742,221 |
|
|
D. $1,659,000 |
In: Accounting
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
1.Percentage change in price of Bond _______ J%
2.Percentage change in price of Bond_______ K%
|
What if rates suddenly fall by 2 percent instead? 3.Percentage change in price of Bond _______ J% 4.Percentage change in price of Bond _______ K% |
In: Finance
Answer Q19-Q23 considering the following information regarding the performance of a portfolio manager in a recent quarter.
|
Manager’s Return |
Manager’s Weight |
Market weight |
Market Return |
|
|
Stocks |
1% |
0.50 |
0.30 |
2% |
|
Bonds |
2% |
0.30 |
0.30 |
1.5% |
|
Marketable securities |
0.75% |
0.20 |
0.40 |
0.5% |
What is the market return of the portfolio in percentage?
What is the return of the manager's portfolio in percentage?
What is the Alpha (in percentage) of the manager's portfolio compared to benchmark (market)?
Identify the contributions (in percentage) of security selection to relative performance.
Identify the contributions (in percentage) of asset allocation to relative performance.
In: Finance
According to statistics, the distribution of ages for licensed drivers has a mean of 44.5 years and a standard deviation of 17.1 years. Assume the distribution of ages is normally distributed. (Give your answers correct to one decimal place.)
(a) What percentage of the drivers are between the ages of 17
and 22.
_______%
(b) What percentage of the drivers are younger than 25 years of
age.
_____%
(c) What percentage of the drivers are older than 21 years of
age.
______ %
(d) What percentage of the drivers are between the ages of 45 and
65.
_______%
(e) What percentage of the drivers are older than 75 years of
age.
_______%
In: Math
A poll of 2514 U.S. adults found that 41% regularly used Facebook as a news source.
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 90% level of confidence. Round all answers to 2 decimal places.
Margin of Error (as a percentage):
Confidence Interval:
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 95% level of confidence. Round all answers to 2 decimal places.
Margin of Error (as a percentage):
Confidence Interval:
Find the margin of error and confidence interval for the percentage of U.S. adults who regularly use Facebook as a news source, at the 99% level of confidence. Round all answers to 2 decimal places
Margin of Error (as a percentage):
Confidence Interval:
In: Statistics and Probability
|
The demand (in number of copies per day) for a city newspaper,
x, has historically been 43,000, 62,000, 74,000, 89,000, or 104,000
with the respective probabilities .2, .16, .4, .2, and
.04. |
| (b) | Find the expected demand. (Round your answer to the nearest whole number.) |
| µx |
| (c) |
Using Chebyshev's Theorem, find the minimum percentage of all possible daily demand values that will fall in the interval [μx ± 2σx]. (Round your answer to the nearest whole number. Input your answers to minimum percentage and percentage of all possible as percents without percent sign.) |
| The minimum percentage of all possible daily demand values is percent. |
| (d) |
Calculate the interval [μx ± 2σx]. According to the probability distribution of demand x previously given, what percentage of all possible daily demand values fall in the interval [μx ± 2σx]? (Round your intermediate values to the nearest whole number. Round your answers to the nearest whole number. Input your answers to minimum percentage and percentage of all possible as percents without percent sign.) |
| The interval is [ , ]. | ||
| The percentage of all possible daily demand values that fall in the interval is percent. |
In: Statistics and Probability
1. The grades on a chemistry midterm at Springer are roughly symmetric with μ=67 and σ=2.0. William scored 66 on the exam.
2. The grades on a language midterm at Oak are roughly symmetric with μ=67 and σ=2.5. Ishaan scored 70 on the exam.
3. The grades on a math midterm at Springer are roughly symmetric with μ=78 and σ=5.0. Omar scored 70 on the exam.
4. The grades on a geometry midterm at Springer are roughly symmetric with μ=68 and σ=2.0. Emily scored 69 on the exam.
In: Statistics and Probability
National Corporation needs to set a target price for its newly designed product M15. The following data relate to this new product. Per unit : Direct materials $26, Direct labor $35, Variable manufacturing overhead $13, Variable selling and administrative expenses $6 and then Total is Fixed manufacturing overhead $1,000,000 and Fixed selling and administrative expenses $600,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 45%.Instructionsa. Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M15 b) Compute the desired profit (ROI) per unit (or the markup per unit on total unit cost) for M15 C) Compute the target selling price for M15. Show all work please thanks
In: Accounting