Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. using regression to calculate fixed cost, calculat

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

70.2K

Verified Solution

Question

Accounting

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost

Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:

Month Labor Cost Employee Hours
January $7,000 360
February 8,140 550
March 9,899 630
April 9,787 610
May 8,490 480
June 7,450 350
July 9,490 570
August 7,531 310

Coefficients shown by a regression program for Pizza Vesuvio's data are:

Intercept 4,517
X Variable 8.20

In your calculations, round the variable rate per employee hour to the nearest cent.

Required:

Use the results of regression to make the following calculations:

1. Calculate the fixed cost of labor. $

Calculate the variable rate per employee hour. $per employee hour

2. Construct the cost formula for total labor cost.

Total labor cost = $ + ($ Employee hours)

3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. $

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

Finance
1.2K views

Hello, please 200 words at least, thank you: Q: What is meant by the "cost of...

Statistics
1.2K views

Depressed patients were randomly assigned to one of three groups: a placebo group, a group that...

Chemistry
1.2K views

1. Calculate [H3O+] in the following aqueous solution at 25 C: [OH−]=1.1×10−9 M. 2. Calculate [H3O+] in...

Psychology
1.2K views

Perspectives such as behaviorism and social cognitive theory show us how the consequence (reinforcement or punishment)...

Physics
1.2K views

If voltage across a bulb rated 220 V 100 W drops by 2 5 of...

Physics
1.2K views

With resistances P and Q in the left and right gaps of a metrebridge the...

Physics
1.2K views

There is a thin uniform disc of radius R and mass per unit area o...

Physics
1.2K views

A man throws balls with the same speed vertically upwards one after the other at...

Accounting
1.2K views

Question 3) ABC Corp. purchased a machine costing $10,000 for its manufacturing plant...

Accounting
1.2K views

Pie Corporation increases its ownership interest in its subsidiary Set corporation, from 70' percent on...

Accounting
1.2K views

Score: 0 of 11 points Save The accounting records of Northwest Fur Traders include these...

Accounting
1.2K views

present Value and Future Value Joshua Inc. estimates that it will need $225,000 in 9...