1. 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.

1. Compute b₁ and b₀ (to 1 decimal).
   b₁
   b₀
   
   Complete the estimated regression equation (to 1 decimal).
   =  +  x
   
2. What is the variable cost per unit produced (to 1 decimal)?
   $
   
3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.
   r² =
   
   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
   %
   
4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
   $

2.

Consider the following data for a dependent variable y and two independent variables, x₁and x₂; for these data SST = 15,029.6, and SSR = 13,917.

Round your answers to three decimal places.

a. Compute R².

b. Compute R_a².

1. Use ggplot R coding to create a scatterplot in order to investigate if there is a linear relationship between MidtermScore and FinalExamScore. Let MidtermScore be designated x and FinalExamScore be designated y.

2. Use R coding to find the correlation coefficient. Also, using two or three sentences, comment on the strength and the direction of the scatter plot. Would it be appropriate to apply a linear regression model to this data set?

3. Use R coding to find the coefficients of the Linear Regression Equation.  Write the Linear Regression (Least Squares Regression) equation.

4. Write an interpretation of the slope for the equation from problem 3.

5. Use R coding to produce the output table that gives the p values for each coefficient, the t values for each coefficient, the Standard error for each coefficient , and the Multiple-R Squared value.

6. Interpret the p values for each estimate in the table that you produced from problem 4.  Also interpret the Multiple-R Squared value in the table.

7. Use your equation from problem 3 to predict a Final Exam Score given a Midterm Score of 87.

8. Find the residual for the observational score of 80 and determine if that score is above or below average.  

PRACTICAL QUESTION

Big Biceps Ltd (BB) is a company that operates a number of fitness centers (‘gyms’). The company is currently offering potential customers a new gym membership. The terms of the new membership are: A For an up-front cash payment of $900, new members will have full access to all training facilities at a nominated gym for a 12-month period. The $900 fee is non-refundable.

A 12-month gym membership alone is normally priced at $960.

B In addition, for the first three months of their membership, new members will receive ‘free’ access once a week to a half-hour individual session with a personal trainer. Three months of such personal training sessions would normally cost member $420.

C As an added incentive, all new members who attend all of their sessions with the personal trainer in the first two months will receive a ‘free’ set of training weights at the end of that two-month period. BB’s prior experience with such offers is that all members receive the ‘bonus’ items at the end of the qualifying period. The training weights normally have a retail price of $80.

QUESTIONS

Required

PRACTICAL QUESTION

Big Biceps Ltd (BB) is a company that operates a number of fitness centers (‘gyms’). The company is currently offering potential customers a new gym membership. The terms of the new membership are:

Required

Below is the post-closing trial balance of Gracie Consultancy Services as at 30 June 2019:

The following transactions occurred during the month July 2019.

Required

a)     Journalise the transactions, including narrations.

b)    Prepare an unadjusted trial balance as at 31 July 2019. (Total 20 Marks)

a)

b)

Please answer ALL of the questions!

At the end of the year, a company offered to buy 4,100 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $18.00 each. The following information relates to the 68,400 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $151,848, and fixed period costs were $78,660. Variable period costs include selling commissions equal to 4% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.87 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 700 units. As a result of these lost sales, X Company's profits would fall by

For each of the following, explain whether you agree or disagree with the accounting treatment. Support your view with the GAAP Principles.

1. A company records all revenue when earned, whether it has been collected or not.
2. Payment of a three-year insurance policy is charged to insurance expense and not adjusted.
3. Because the December telephone bill did not arrive until January, no telephone expense was recorded for December.

Lexington hospital has the following departments: administration, housekeeping, marketing, medical/surgical unit, intensive care unit.

List each of three cost allocation methods, and use diagrams to describe each. Waht cost driver would you use to allocate costs for each of the non-revenue producing departments? Why did you choose each cost driver?

Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization. List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

pay roll fundamental 2 chapter 1

The age of a patient at the time of diagnosis of colon cancer was tracked—50 males and 50 females. The ages are:

M: 91 87 87 85 83 81 80 79 78 77 75 75 74 73 72 72 71 71
70 69 69 68 66 66 65 63 63 63 62 62 62 61 61 61 60 60
59 59 57 56 55 55 53 53 51 48 45 39 38 29
F: 94 93 92 90 89 88 87 86 86 85 85 83 81 79 79 78 77 77
76 76 76 76 75 74 74 73 72 72 71 70 68 68 67 66 66 65
65 6564 64 64 63 60 59 58 55 54 53 51 48

a. Calculate the range for males........... , females ............ , and combined ...............

b. Calculate the average age for men (compute to the second decimal) ............ .

c. Calculate the value for:
85th percentile for the combined ages...........
Percentile for an age of 60 for females............ th
Percentile for an age of 75 for males. .......... th

2-calculate the average age for men (compute to the second decimal)................

3- Calculate the value for:

(1) 85th percentile for the combined ages..........
(2) Percentile for an age of 60 for females........... th
(3) Percentile for an age of 75 for males............. th