Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. armer company is accumulating data to use in prepa

Armer Company is accumulating data to use in preparing its annual profit plan for the...

60.1K

Verified Solution

Question

Accounting

Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: Month Maintenance Cost Machine Hours Jan. $ 4,200 480 Feb. 3,000 320 Mar. 3,600 400 Apr. 2,820 300 May 4,350 500 June 2,960 310 July 3,030 320 Aug. 4,470 520 Sept. 4,260 490 Oct. 4,050 470 Nov. 3,300 350 Dec. 3,160 340 Sum $ 43,200 4,800 Average $ 3,600 $ 400 Average cost per hour $ 9.00 a (intercept) $ 684.65 b (coefficient) 7.2884 Standard error of the estimate 34.469 R-squared 0.99724 t-value for b 60.105 Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at Answers could be: $3,746. $3,461. None of these answer choices are correct. $3,797. $3,780

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

7 Interpret the sample photographs shown in Figure 17 5 For each photograph take note...

Finance
1.2K views

A pension fund manager is considering three mutual funds. The first is a stock fund, the...

Basic Math
1.2K views

7. The following is the number of passengers per ight in a sample of 34 ights from...

Physics
1.2K views

4 identical 22 4 gram masses are 10 3 cm from an axis of rotation...

Algebra
1.2K views

Vrite a general formula to describe the variation A varies directly with x A 8...

Algebra
1.2K views

f x x 4 3x 3 7x 2 27x 18 given that 3 and 3...

Accounting
1.2K views

Choose from the list of terms and phrases to best complete the following statements

Accounting
1.2K views

Costs associated with holding inventory include hidden costs, such as low employee motivation. True or...

Accounting
1.2K views

Discuss the two (2) components of every Sales dollar, and defend the choice of a...

Accounting
1.2K views

Can someone please help? ...

Accounting
1.2K views

17. This year Ann has the following stock transactions. What amount is included in her...

Accounting
1.2K views

Wildhorse Companys 12/31/18 balance sheet reports assets of $7090000 and liabilities of $2890000. All of...