hapters 14 15 Assignment 10. An important application of regression analysis in accounting is in theestimation of cost. By collecting data on volume and cost and using the least squares volume. Considerthe following sample of production volumes and total cost data for a manufacturing operation. [[Production Volume (units), Total Cost ()

Using regression analysis to estimate costs based on production volume:Data Collection: Gather data…

Answered: hapters 14 15 Assignment 10. An…

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter26: Cost Allocation And Activity-Based Costing

Section: Chapter Questions

Problem 9DQ

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Items on variable costing income statement In the following equations, based on the variable costing income statement, identify the items designated by X: a. Net Sales X = Manufacturing Margin b. Manufacturing Margin X = Contribution Margin c. Contribution Margin X = Income from Operations
Please answer the following: 1. What is cost of production report? 2. What is cost per equivalent unit? 3. What is Equivalent Unit of Production? 4. What is FIFO method? 5. what is Average cost method?
о 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. о о O Production Volume (units) Total Cost ($) 400 4,000 450 5,000 550 5,400 600 5,900 700 750 6,400 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. Do not round intermediate calculations. Compute b₁ and bo (to 1 decimal). bi bo Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations ŷ=1338.6 + 7.44 I b. What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations $ 7.44 c. Compute the…
11. Choose the scope of cost accounting that is primarily prepared for different level of management. a.Cost accounting b.Cost reports c.Cost analysis d.Cost comparison 12. according to which method of pricing, issues are made with the current market price. a.First in first out b.Simple average c.Weighted average d.Last in first out
What is the answer from total manufacturing cost to net profit? Numbers 4-10
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
What is target cost per unit? Question content area bottom Part 1 A. Target cost per unit is the contribution margin per unit over the average total unit cost. B. Target cost per unit is the average total unit cost over the contribution margin ratio. C. Target cost per unit is the variable unit cost over the product's life cycle. D. Target cost per unit is the average total unit cost over the product's life cycle.
In representing the total manufacturing costs in the equation Y=a+bX, “a ” in the equation represents the amount of total fixed costs while the “bX” represents the amount of Level of activity Total manufacturing costs Total variable manufacturing costs Variable cost per unit Group of answer choices 1 2 3 4
20-Which of the following term is used to denote, the response of cost to the change in the volume of production? a. Cost response b. Cost trend c. Cost behavior d. Cost accumulation
In representing the total manufacturing costs in the equation Y=a+bX, “a ”in the equation represents the amount of total fixed costs while the “bX”represents the amount of 1. Level of activity2. Total manufacturing costs3. Total variable manufacturing costs4. Variable cost per unit
Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 108 142 2,160 2,840 160,000 42 38 8 Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
Problem No. 3 (Cost Accounting) Determine the following using the weighted average (WA) method of process costing 1. Equivalent units of production for materials and conversion cost 2. unit costs, and; 3. Inventory values

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