Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool’s monthly planning budget is based on operating 20 vehicles; however, for the month of March the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage.

The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March.

The planning budget was based on the following assumptions:

1. $0.27 per mile for gasoline.
2. $0.16 per mile for oil, minor repairs, and parts.
3. $51 per automobile per month for outside repairs.
4. $86 per automobile per month for insurance.
5. $8,610 per month for salaries and benefits.
6. $211 per automobile per month for depreciation.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool’s performance.

Required:

1. Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Noreen_5e_Rechecks_2019_10_17

Nex

1. Determine the regression coefficient, b0, b1, and b2. State the multiple regression equation.
2. Interpret the meaning of b0, b1, and b2.
3. Explain why the regression coefficient b0 has no practical meaning in the context of this problem.
4. Predict the miles per gallon for cars that have 60 horsepower and weight 2,000 pounds.
5. If you were consulting for this organization and were provided these data to make a preliminary analysis, what would be your recommended next steps for the organization? (100 words)

Exercise 12-16 Identification of Relevant Costs [LO12-1]

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck:

Required:

1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?

2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?

9- Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool’s monthly planning budget is based on operating 18 vehicles; however, for the month of March the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage. The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March.

The planning budget was based on the following assumptions:

$0.12 per mile for gasoline. $0.09 per mile for oil, minor repairs, and parts, $33 per automobile per month for outside repairs.$69 per automobile per month for insurance.$8,610 per month for salaries and benefits.$194 per automobile per month for depreciation.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool’s performance.

Required:1. Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

6. A device for acclimating military pilots to the high accelerations they must experience consists of a horizontal beam that rotates horizontally about one end while the pilot is seated at the other end. In order to achieve a radial acceleration of 35.1 m/s2 with a beam of length 5.39 m, what rotation frequency is required?

? Hz

7. You want to design an oval racetrack such that 3200 lb racecars can round the turns of radius 1000 ft at 105 mi/h without the aid of friction. You estimate that when elements like downforce and grip in the tires are considered the cars will round the turns at a maximum of 175 mi/h. Find the banking angle θ necessary for the racecars to navigate these turns at 105 mi/h and without the aid of friction.

? degree

This banking and radius are very close to the actual turn data at Daytona International Speedway where 3200 lb stock cars travel around the turns at about 175 mi/h. What additional radial force is necessary to hold the racecar on the track at 175 mi/h?

? N

8. A 5.21-kg ball hangs from the top of a vertical pole by a 2.51-m-long string. The ball is struck, causing it to revolve around the pole at a speed of 4.83 m/s in a horizontal circle with the string remaining taut. Calculate the angle, between 0° and 90°, that the string makes with the pole. Take g = 9.81 m/s2.

? degree

What is the tension of the string?

? N

10. A jet airplane is in level flight. The mass of the airplane is m = 8990 kg. The plane travels at a constant speed around a circular path of radius R = 8.01 miles and makes one revolution every T = 0.106 hours. What is the magnitude of the lift force acting on the plane?

L = ? kN

Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-inch insulation. The maintenance costs totaled $400,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:

After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $400,000; however, these costs are now traceable to each cell.

The maintenance cost per roll of 8-inch insulation before JIT is installed would be

a.$20.00.

b.$16.00.

c.$9.33.

d.$6.40.

Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas:

The following customer information is given:

What is the profitability of customer BY?

a.$3,840,000

b.$4,000,000

c.$3,837,670

d.$2,330,000

ou are headed to the mountains for some climbing this summer and you need some gear. The local mountaineering shop is offering 5% financing on all purchases before the end of the month. Your savings account is currently paying 6%, and you are in a marginal tax bracket of 28%. Which of the following is true (after taxes)?

Billy has chosen to purchase a new vehicle. The vehicle costs $15,000. His APR is 10% and he will be financing the vehicle for 36 months. How much will Billy pay each month for his new vehicle?

1. Suppose that you were thinking about leasing a new vehicle. Which of the following should not be an important consideration?

   	a.	I drive less than 15,000 miles annually
   	b.	I like to have my car under warranty for major repairs
   	c.	It's the only way I can afford a luxury vehicle
   	d.	My automobile needs will change in a few years.

1. George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement

   Gross monthly income: $8,000

   Income taxes withheld monthly: $1,300

   Monthly interest income from investments: $100

   Monthly insurance payments: $700

   Monthly housing expenses: $4,500

   Monthly food expenses: $800

   What is George and Betty's monthly income available for savings and investment?

   	a.	$900
   	b.	$800
   	c.	$600
   	d.	$8,000

We are interested in exploring the relationship between the weight of a vehicle and its fuel efficiency (gasoline mileage). The data in the table show the weights, in pounds, and fuel efficiency, measured in miles per gallon, for a sample of 12 vehicles.

• Part (b)

  r = -0.71 (correlation coefficient).
  Yes, it is significant
• Part (c) Find the equation of the best fit line. (Round your answers to four decimal places.)       ŷ = ________x + _______

Part (e)

What percent of the variation in fuel efficiency is explained by the variation in the weight of the vehicles, using the regression line? (Round your answer to the nearest whole number.)
%

Part (g)

For the vehicle that weighs 3000 pounds, find the residual

(y − ŷ).

(Round your answer to two decimal places.)


Does the value predicted by the line underestimate or overestimate the observed data value?

underestimate or overestimate    

Part (i)

The outlier is a hybrid car that runs on gasoline and electric technology, but all other vehicles in the sample have engines that use gasoline only. Explain why it would be appropriate to remove the outlier from the data in this situation.

The outlier lies directly on the line, so the error residual (y − ŷ) is zero. The outlier represents a different population of vehicles compared to the rest.     The outlier is creating a curved least squares regression line. The outlier does not lie directly on the line, but it is close.

Remove the outlier from the sample data. Find the new correlation coefficient and coefficient of determination. (Round your answers to two decimal places.)

Find the new best fit line. (Round your answers to four decimal places.)
ŷ = __  x + __