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cell colored yellow

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om the dropdown

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MC-001

Armer Company is accumulating data to use in preparing its annual profit plan
costs. Data regarding the maintenance hours and costs for the last year and t

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average

Maintenance
Cost
$3,570
$2,600
$3,000
$2,426
$3,676
$2,469
$2,580
$3,666
$3,660
$3,370
$2,770
$2,662
$36,449
$3,037

Average cost per hour


a (intercept)
b (coefficient)
Standard error of the estimate
R-squared
t-value for b

The coefficient of determination for Armer's regression equation for the maint

Answer:

MC-002

0.213665
A.
0.990534
B.
0.715559
C.
0.995256
D.
E. None of the above
B.

Georgia Meadows Company uses the high-low method to analyze production c


Month
January

Cost (Y)
$8,542

February
March
April
May
June

$7,750
$9,700
$7,435
$7,200
$9,263

How should the cost function be properly stated using the high-low method?

Answer:

MC-003

A.
B.
C.
D.
D.

Y
Y
Y
Y

=
=
=
=

$9,263 + $0162H
$1,025 + $125H
$875 + $105H
$325 + $125H

Burmer Co. has accumulated data to use in preparing its annual profit plan for
are as follows:

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average

Maintenance
Cost
$5,610
$3,990
$4,763
$3,777
$5,691
$3,916
$4,027
$5,908
$5,636
$5,464
$4,392
$4,147
$57,321
$4,777

A staff assistant has run regression analyses on the data and obtained the foll
REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours

The 95% confidence range for a prediction of monthly manufacturing cost usin

Answer:

A.
B.
C.
D.
A.

The range of +/- $65.79 x 2 = $131.58 around the predicted amount


From $649 to $706
From $631 to $936
The range of +/- $65.79 around the predicted amount

Burmer Co. has accumulated data to use in preparing its annual profit plan for
are as follows:

MC-004

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average

Maintenance
Cost
$5,030
$3,630
$4,390
$3,444
$5,260
$3,556
$3,589
$5,364
$5,197
$4,804
$3,932
$3,771
$51,967
$4,331

A staff assistant has run regression analyses on the data (you still need to do
REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours
The t statistic for the independent variable:

Answer:

A.
B.
C.
D.
C.

At 11.46, is statistically significant


At 52.78, is too large to be statistically significant
Is statistically significant at less than 5% risk
Lies somewhere between 6.49 and 7.063

Bradford Company derived the following cost relationship from a regression an

MC-005

C = $80,000 + $12M
where:
C = monthly manufacturing overhead cost, and
M = machine hours

The standard error of estimate of the regression is $6,000 The standard time r
is 50,000 cases

Bradford's estimated variable manufacturing overhead cost for a month in wh

Answer:

$120,000
A.
$140,000
B.
$80,000
C.
$200,000
D.
E. Some amount other than those given above
B.

If the coefficient of correlation between two variables is nearly zero, how migh

MC-006

Answer:

MC-007

A.
B.
C.
D.
C.

Under this condition, a scatter diagram could not be plotted on a graph


A least squares line that slopes down to the right
Random points
A least squares line that slopes up to the right

Examine this chart.

In the learning curve, Y = a*X^b


The value of b is:

Answer:

A.
B.
C.
D.
E. None
B.

A range around the regression line within which the management accountant

MC-008

Answer:

MC-009

685.70
-0.310
0.0220
0.9901
of the above are correct

A.
B.
C.
D.
E.
E.

A
A
A
A
A

p-value
t-value
relevant range
goodness of fit
confidence interval

Examine this chart.

The standard error value for the coefficient m1

In regard to the variable cost, maintenance cost per direct labor hour, I am 95

Answer:

MC-010

A.
B.
C.
D.
E.
E.

$18.38
$20.30
$21.26
$17.41
$19.34

and
and
and
and
and

Examine this diagram:

$28.00
$26.08
$25.11
$28.96
$27.04

Choose the best answer.

Answer:

A.
B.
C.
D.
E.
D.

CalcuCo hired Effner & Associates to design a new computer-aided manufactu


facility normally expects to operate at seventy four percent of capacity, is calc

MC-011

Answer:

MC-012

Supplies Expense Data for Regression Application


Regression with High R- Squared
The Effect of Outliers on Regression
The Regression Line for Supplies Expense with Units of Output as the Cost Dri
Regression with Low R- Squared

A.
B.
C.
D.
E.
C.

$952.74
$977.74
$902.74
$927.74
$1,002.74

Burmer Co. has accumulated data to use in preparing its annual profit plan for
are as follows:

Month
January
February
March
April
May
June
July
August
September

Maintenance
Cost
$5,290
$3,680
$4,432
$3,470
$5,432
$3,625
$3,810
$5,508
$5,291

October
November
December
Sum
Average

$5,018
$4,094
$3,992
$53,642
$4,470

A staff assistant has run regression analyses on the data and obtained the foll
REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours

Using regression analysis, what is the estimated maintenance expense for a m

Answer:

A.
B.
C.
D.
C.

Which of the following provides the most accurate cost estimation?

MC-013

Answer:

MC-014

$5,660
$6,160
$5,160
$6,660

A.
B.
C.
D.
C.

Regression analysis with R-squared of 0.12


High-low method
Regression analysis with R squared of 0.89
Regression analysis with F value of 1.2

Home Remodeling Inc. recently obtained a short-term bank loan from City Nat
forecast total overhead cost. The actual machine hours and overhead cost are

Month
Jan
Feb
Mar
Apr
May

Total
Overhead
$3,214
$3,524
$2,997
$3,205
$3,268

Jun

$3,445

Using the high-low method, total monthly fixed overhead cost is calculated to

Answer:

MC-015

A.
B.
C.
D.
E.
E.

$773
$723
$873
$673
$823

Armer Company is accumulating data to use in preparing its annual profit plan
costs. Data regarding the maintenance hours and costs for the last year and t

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average

Maintenance
Cost
$4,610
$3,300
$3,900
$3,143
$4,744
$3,221
$3,350
$4,911
$4,722
$4,550
$3,700
$3,536
$47,687
$3,974

Average cost per hour


a (intercept)
b (coefficient)
Standard error of the estimate
R-squared
t-value for b
If Armer Company uses the high-low method of analysis, the equation for the

Answer:

A.
B.
C.
D.
E.
A.

Which one the following is a variable that takes on values of 1, 2, 3, for eac

MC-016

Answer:

A.
B.
C.
D.
E.
A.

MC-018

Trend variable
Independent variable
Dependent variable
Dummy variable
Price change index

The Lower 95% and Upper 95% shown in the Excel Analysis Toolpak Regressio

MC-017

Answer:

y = $743.15 + $7.36x
y = $617.29 + $7.36x
y = $617.29 + $7.65x
y = $743.15 + $7.65x
None of the above

A.
B.
C.
D.
E.
C.

We
We
We
We
We

can
can
can
can
can

be
be
be
be
be

95%
95%
95%
95%
95%

confident
confident
confident
confident
confident

Examine this chart.

that
that
that
that
that

the
the
the
the
the

statistical reliability of the regression equat


coefficients of the independent variables w
precision of the regression equation will be
coefficients of the dependent variable will b
regression equation will be within the range

In the learning curve, Y = a*X^b


The value of b is:

Answer:

MC-019

A.
B.
C.
D.
E. None
A.

-0.330
0.0342
0.9790
663.39
of the above are correct

Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felina
previous fiscal year for maintenance expense and machine hours:

Month
1
2
3
4
5
6
7
8
9
10
11
12

Maintenance
Expense
$3,010
$3,209
$3,343
$3,455
$3,444
$3,600
$3,439
$3,322
$2,986
$2,796
$2,681
$2,859

Using the high-low method, total monthly fixed cost is calculated to be:

Answer:

A.
B.
C.
D.
E.
A.

A p-value of less than _______ is typically considered statistically significant

MC-020

Answer:

$992.73
$1,002.73
$1,012.73
$972.73
$982.73

A.
B.
C.
D.
B.

5
0.05
0.5
0.005

The following costs were for Optimal View Inc., a contact lens manufacturer:

MC-021

Output
270
314
358
402

Fixed
Cost
$4,720
$4,720
$4,720
$4,720

At an output level of 376 lenses, per unit variable cost is calculated to be:

Answer:

A.
B.
C.
D.
E.
B.

$35.25
$36.00
$35.00
$35.75
$35.50

The following costs were for Bikeway Inc., a bicycle manufacturer:

MC-022

Output
850
904
958
1,012

Fixed
Cost
$26,200
$26,200
$26,200
$26,200

At an output level of 1,066 bicycles, per unit variable cost is calculated to be:

Answer:

A.
B.
C.
D.
E.
E.

Data collected on the cost objects and cost drivers for cost estimation must be

MC-023

Answer:

MC-024

$150
$90
$110
$120
$100

A.
B.
C.
D.
E.
E.

Concrete
Varied
Exhaustive
Brief and limited
Consistent and accurate

A manager uses regression to express sales as a function of advertising expen


Y = 10 + .51X1 + .45X2
The coefficient of determination is .96
This coefficient of determination explains that:

A. The dependent variable is not related to advertising expenditures and per cap
B. 96% of sales variations are explained by the equation
C. 96% of sales variations are due to an error term


D. Only 4% of the sales variations are explained by advertising expenditures and
Answer: B.

A company allocates its variable factory overhead based on direct labor hours

MC-025

Direct labor hours


Total overhead allocated

Jan
1,100
$90,000

Feb
3,400
$153,000

Based upon this information, monthly fixed factory overhead was:

Answer:

MC-026

A.
B.
C.
D.
D.

$53,222
$63,222
$68,222
$58,222

Armer Company is accumulating data to use in preparing its annual profit plan
costs. Data regarding the maintenance hours and costs for the last year and t

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average

Maintenance
Cost
$4,200
$3,000
$3,580
$2,830
$4,377
$2,990
$3,070
$4,455
$4,348
$4,010
$3,250
$3,159
$43,269
$3,606

Average cost per hour


a (intercept)
b (coefficient)
Standard error of the estimate
R-squared
t-value for b

The percent of the total variance that can be explained by the regression equa

Answer:

24.52%
A.
69.07%
B.
99.45%
C.
98.90%
D.
E. None of the above
D.

Based on the maintenance expenses of a company are to be analyzed for pur

MC-027

Cost per month


Machine hours

Highest
$88,700
98,000

Lowest
$74,900
66,900

Using the high-low technique, estimate the annual fixed cost for maintenance

Answer:

MC-028

A.
B.
C.
D.
E.
B.

$55,214
$45,214
$542,574
$552,574
$60,214

Examine this diagram:

Choose the best answer.

Answer:

MC-029

A.
B.
C.
D.
E.
C.

The Regression Line for Supplies Expense with Units of Output as the Cost Dri
Regression with High R- Squared
Regression with Low R- Squared
Selected Independent Variables and Dependent Variables for Costs in a Retail
Supplies Expense Data for Regression Application

Armer Company is accumulating data to use in preparing its annual profit plan
costs. Data regarding the maintenance hours and costs for the last year and t

Month
January
February
March
April
May
June
July
August
September
October
November
December
Sum
Average
Average cost per hour
a (intercept)
b (coefficient)

Maintenance
Cost
$4,130
$2,900
$3,510
$2,744
$4,180
$2,896
$2,930
$4,318
$4,126
$3,880
$3,210
$3,062
$41,886
$3,491

Standard error of the estimate


R-squared
t-value for b

Based on the data derived from the regression analysis, 408 maintenance hou

Answer:

$3,577
A.
$3,591
B.
$3,619
C.
$3,605
D.
E. None of the above
C.

Which of the following is the percentage by which average time (or total time)

MC-030

Answer:

$3,618.32

A.
B.
C.
D.
E.
C.

Learning
Learning
Learning
Learning
Learning

curve
analysis
rate
average
speed

g its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must b
for the last year and the results of the regression analysis follow:
Machine
Hours
401
268
330
250
430
257
269
438
412
392
294
280
4,021
335
$9.06
$721.47
$6.91
52.3601
.9905
32.3476

quation for the maintenance activities is

o analyze production costs. The following information relates to the production data for the first six mo
Hours (H)
6,530

$9,700

7,500

5,950
7,500
5,700
5,500
6,750

$7,200
$2,500

5,500
2,000

$1.25

he high-low method?
$325

annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be

Machine
Hours
690
464
575
425
733
440
475
759
704
673
511
490
6,939
578

a and obtained the following output using Excel:

anufacturing cost using the model is:

cted amount

annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be

Machine
Hours
619
421
513
387
653
400
446
692
648
611
458
446
6,294
525

a (you still need to do this) and obtained the following output using Excel:

p from a regression analysis of its monthly manufacturing overhead cost:

0 The standard time required to manufacture one six-unit case of Bradford's single product is two mac

ost for a month in which scheduled production is 5,000 cases would be:

nearly zero, how might a graph of these variables appear?

tted on a graph

nagement accountant can rely that the actual value of the predicted cost will fall is referred to as:

1.924797

ct labor hour, I am 95% confident the cost will vary between:

Output as the Cost Driver ( i. e., independent variable)

uter-aided manufacturing facility. The new facility was designed to produce 260 computers per month.
ent of capacity, is calculated to be (round to nearest cent):

annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be

Machine
Hours
636
427
541
399
664
410
451
696
670

640
477
451
6,462
539

a and obtained the following output using Excel:

nance expense for a month that the firm expects to operate 640 machine hours (round to nearest who

estimation?

ank loan from City National Bank. The bank required that certain credit information and pro forma finan
and overhead cost are presented below for the past six months.
Machine
Hours
1,281
1,399
1,126
1,218
1,227

1,300

d cost is calculated to be:

g its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must b
for the last year and the results of the regression analysis follow:
Machine
Hours
522
352
450
330
550
341
351
561
536
517
382
375
5,267
439
$9.05
$743.15
$7.36
74.3868
.9892
30.3142
the equation for the relationship between hours of activity and maintenance cost follows:

s of 1, 2, 3, for each period in sequence?

ysis Toolpak Regression output suggests that:

f the regression equation will be within the ranges specified


ependent variables will be within the ranges specified
ssion equation will be within the ranges specified
pendent variable will be within the ranges specified
will be within the ranges specified

owner, Kenneth Felinas, asked you to assist him in estimating his maintenance costs. Together, Mr. Fel
ne hours:
Machine
Hours
2,130
2,230
2,320
2,278
2,197
2,334
2,343
2,292
2,140
1,990
1,617
1,950

alculated to be:

istically significant

lens manufacturer:
Variable
Cost
$9,720
$11,304
$12,888
$14,472
calculated to be:

Total
Cost
$14,440
$16,024
$17,608
$19,192

ufacturer:
Variable
Cost
$85,000
$90,400
$95,800
$101,200

Total
Cost
$111,200
$116,600
$122,000
$127,400

st is calculated to be:

ost estimation must be:

n of advertising expenditures (X1), and per capita income (X2) in your sales area. The following multip

enditures and per capita income

sing expenditures and per capital income

d on direct labor hours During the past three months, the actual direct labor hours and the total factory
Mar
5,600
$220,000

head was:

g its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must b
for the last year and the results of the regression analysis follow:
Machine
Hours
483
319
390
300
490
318
317
511
500
476
349
342
4,795
400

$9.02
$664.59
$7.36
69.0564
.9890
30.0197

by the regression equation is

o be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the

cost for maintenance expenditures:

Output as the Cost Driver ( i. e., independent variable)

s for Costs in a Retail Store

g its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must b
for the last year and the results of the regression analysis follow:
Machine
Hours
462
310
390
290
490
304
311
513
474
460
342
332
4,678
390
$8.95
$725.56
$7.09

61.9967
.9903
31.9457

408 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest d

ge time (or total time) falls from previous levels as output doubles?

maintenance costs must be determined. The accounting staff has suggested the use of linear regressio

n data for the first six months of the year.

aintenance costs must be determined. Data regarding the machine hours and maintenance costs for t

aintenance costs must be determined. Data regarding the machine hours and maintenance costs for t

single product is two machine hours Bradford applies manufacturing overhead to production on the ba

fall is referred to as:

60 computers per month. The variable costs for each computer are $570 and the fixed costs total $64,

aintenance costs must be determined. Data regarding the machine hours and maintenance costs for t

urs (round to nearest whole dollar)?

ation and pro forma financial statements be maintained through the life of the loan. In order to prepare

maintenance costs must be determined. The accounting staff has suggested the use of linear regressio

cost follows:

ce costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance cos

rea. The following multiple linear regression equation is developed:

ours and the total factory overhead allocated were as follows:

maintenance costs must be determined. The accounting staff has suggested the use of linear regressio

past records disclosed the following costs and volume measures:

maintenance costs must be determined. The accounting staff has suggested the use of linear regressio

budgeted to the nearest dollar at

d the use of linear regression to derive an equation for maintenance hours and

and maintenance costs for the last year and the results of the regression analysis

and maintenance costs for the last year and the results of the regression analysis

ead to production on the basis of machine hours, and its normal annual production

nd the fixed costs total $64,020 per month. The average cost per unit, if the

and maintenance costs for the last year and the results of the regression analysis

the loan. In order to prepare the pro forma statements, Home Remodeling must

d the use of linear regression to derive an equation for maintenance hours and

driver for maintenance costs was machine hours. Below are data from the

d the use of linear regression to derive an equation for maintenance hours and

d the use of linear regression to derive an equation for maintenance hours and

Horton Manufacturing Inc. produces blinds and other window treatments for residential home
to better predict the firms profitability. Together, you have determined that the best cost driv

Month
1
2
3
4
5
6
7
8
9
10
11
12

Expense
$3,522
$3,511
$3,209
$3,469
$3,462
$3,590
$3,526
$4,019
$3,319
$3,243
$3,250
$3,574

Hours
1,771
2,013
1,987
2,054
2,251
2,337
2,209
2,282
2,189
1,654
1,983
1,754

1. What is the cost equation for maintenance cost using the high-low method?
Max
Min
Difference
Varaible cost
Fixed costs (use max)

2. Calculate MAPE for the equation you developed in part 1.


Month
1
2
3
4
5
6
7
8
9
10
11
12

Expense
$3,522
$3,511
$3,209
$3,469
$3,462
$3,590
$3,526
$4,019
$3,319
$3,243
$3,250
$3,574

Hours
1,771
2,013
1,987
2,054
2,251
2,337
2,209
2,282
2,189
1,654
1,983
1,754

Any outliers

Yes

ow treatments for residential homes and offices. The owner is concerned about the maintenance costs
e determined that the best cost driver for maintenance costs is machine-hours. The data from the pre

he high-low method?
Cost
$3,590
$3,243
$347

Hours
2,337
1,654
683
$0.51
$2,402.68

Hi-Lo Estimate
$3,302
$3,425
$3,412
$3,446
$3,546
$3,590
$3,525
$3,562
$3,515
$3,243
$3,410
$3,294

MAPE
6.2%
2.4%
6.3%
0.7%
2.4%
0.0%
0.0%
11.4%
5.9%
0.0%
4.9%
7.8%

about the maintenance costs for the production machinery, as maintenance costs for the previous fisc
ours. The data from the previous fiscal year for maintenance expense and machine-hours are as follo

ce costs for the previous fiscal year were higher than he expected. The owner has asked you to assist
d machine-hours are as follows:

r has asked you to assist in estimating future maintenance costs

Excel Instructions

No additional Excel instructions


No pivot tables, no tables/lists, no range names, no charts, no Solver models, no Analysis Too

/lists, no range names, no charts, no Solver models, no Analysis Toolpak procedures

o Analysis Toolpak procedures

Plantcity is a large nursery and retail store specializing in house and garden plants and suppli
December 2012, and has estimated sales for 2013.

Date
February-15
January-15
December-14
November-14
October-14
September-14
August-14
July-14
June-14
May-14
April-14
March-14
February-14
January-14
December-13
November-13
October-13
September-13
August-13
July-13
June-13
May-13
April-13
March-13
February-13
January-13
December-12
November-12
October-12
September-12
August-12
March-15
April-15
May-15
June-15
July-15
August-15
September-15

Supplies
Expense
$2,486
$3,272
$2,196
$2,234
$1,972
$3,538
$3,093
$1,416
$2,429
$1,761
$2,141
$3,365
$2,777
$3,134
$2,768
$2,029
$2,237
$2,519
$3,240
$1,936
$1,566
$3,330
$2,772
$2,017
$2,946
$1,661
$2,540
$2,281
$2,278
$1,882
$2,871

October-15
November-15
December-15
January-16
February-16

1. Develop the regression that Jean should use based on the above data and using the regres
Model:
R Square

Intercept
Sales Units
Sales Dollars

Supplies Expense = F(Sales Units and Sales Dollars)


0.43437

Coefficients
Standard Error
923.70437
531.19132
0.76954
0.47767
0.65975
0.31678

2. What are the predicted monthly figures for supplies expense for 2013?
Model to use:
Supplies = F (Sales Dollars)

Date
March-15
April-15
May-15
June-15
July-15
August-15
September-15
October-15
November-15
December-15
January-16
February-16

SUMMARY OUTPUT

Sales Units
143
205
197
352
341
285
361
547
248
235
348
347

Regression Statistics
Multiple R
0.659069645
R Square
0.434372797
Adjusted R Square
0.3939708539
Standard Error
452.7370570598
Observations
31
ANOVA
df
Regression
Residual
Total

Intercept
X Variable 1
X Variable 2

SS
2 4407399.81997
28 5739183.599385
30 10146583.41935

Coefficients
Standard Error
923.7043735809 531.1913217697
0.7695422034
0.4776668182
0.6597537219
0.3167827622

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.5888555473
R Square
0.3467508556
Adjusted R Square
0.324225023
Standard Error
478.0797414969
Observations
31
ANOVA
df
Regression
Residual
Total

Intercept
X Variable 1

SS
1 3518336.481692
29 6628246.937663
30 10146583.41935

Coefficients
Standard Error
1989.515090211 150.3565244531
1.4477801334
0.369006714

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.6180145107

R Square
Adjusted R Square
Standard Error
Observations

0.3819419354
0.3606295883
465.024200727
31

ANOVA
df
Regression
Residual
Total

Intercept
X Variable 1

SS
1 3875405.708764
29 6271177.710591
30 10146583.41935

Coefficients
Standard Error
499.3751770542 473.8122268989
1.0076947186
0.2380378122

e and garden plants and supplies. Jean Raouth, the assistant manager, is in the process of budgeting m

Sales Units
300
366
481
114
185
487
941
169
233
195
282
433
444
305
377
169
262
372
933
81
164
228
405
148
309
192
245
114
220
200
1,015
143
205
197
352
341
285
361

Sales Dollars
$1,884
$1,804
$2,379
$1,582
$2,070
$2,085
$2,302
$1,374
$1,952
$1,528
$2,030
$2,794
$2,409
$1,878
$2,062
$1,636
$1,951
$1,931
$2,815
$1,902
$1,716
$2,267
$2,052
$2,039
$1,957
$1,667
$1,383
$1,661
$1,591
$1,692
$2,346
$1,377
$1,416
$1,969
$1,710
$1,778
$1,532
$2,030

547
248
235
348
347

$2,646
$1,958
$1,837
$2,997
$3,004

bove data and using the regression procedure REGRESSION in Excel Analysis Toolpak - enter the follow

les Units and Sales Dollars)

Supplies Expense = F(Sales Units)


R Square

t Stat

P-value
1.73893
1.61104
2.08267

0.09303 Intercept
0.11839 Sales Units
0.04653

e for 2013?
pplies = F (Sales Dollars)

Sales Dollars
$1,377
$1,416
$1,969
$1,710
$1,778
$1,532
$2,030
$2,646
$1,958
$1,837
$2,997
$3,004

Predicted
Supplies Expense
$2,197
$2,286
$2,275
$2,499
$2,483
$2,402
$2,512
$2,781
$2,349
$2,330
$2,493
$2,492

0.34675

Coefficients
1,989.51509
1.44778

MS
2203699.90998483
204970.842835185

F
10.7512848145

t Stat
1.7389297146
1.6110438784
2.0826692627

P-value
0.0930326048
0.1183872893
0.0465339383

MS
3518336.48169207
228560.239229751

F
15.3934756699

t Stat
P-value
13.2319837629 8.137380151E-014
3.9234520094
0.0004923009

Significance F
0.0003431026

Lower 95%
Upper 95%
-164.3917235918 2011.8004707536
-0.2089139184
1.7479983253
0.0108536493
1.3086537944

Significance F
0.0004923009

Lower 95%
Upper 95%
1682.001469511 2297.0287109102
0.6930766639
2.202483603

MS
3875405.70876431
216247.507261742

F
17.9211578336

t Stat
1.0539516473
4.2333388517

P-value
0.3006075031
0.0002116019

Significance F
0.0002116019

Lower 95%
Upper 95%
-469.6796342043 1468.4299883126
0.5208527291
1.494536708

in the process of budgeting monthly supplies expense for 2013. She assumes that in some way supplie

sis Toolpak - enter the following Regression results.

Expense = F(Sales Units)

Standard Error

t Stat
150.35652
0.36901

Supplies Expense = F(Sales Units and


Sales Dollars)
$1,942
$2,016
$2,374
$2,323
$2,359
$2,154
$2,541
$3,090
$2,406
$2,317
$3,169
$3,173

P-value
13.23198
3.92345

0.00000
0.00049

Supplies Expense Supplies Expense


= F(Sales Units) = F(Sales Dollars)
$2,197
$2,286
$2,275
$2,499
$2,483
$2,402
$2,512
$2,781
$2,349
$2,330
$2,493
$2,492

$1,887
$1,926
$2,484
$2,223
$2,291
$2,043
$2,545
$3,166
$2,472
$2,351
$3,519
$3,526

Lower 95.0%
Upper 95.0%
-164.3917235918 2011.8004707536
-0.2089139184
1.7479983253
0.0108536493
1.3086537944

Lower 95.0%
Upper 95.0%
1682.001469511 2297.0287109102
0.6930766639
2.202483603

Lower 95.0%
Upper 95.0%
-469.6796342043 1468.4299883126
0.5208527291
1.494536708

hat in some way supplies expense is related to sales, either in units or in dollars. She has collected the

Supplies Expense = F(Sales Dollars)


R Square

Intercept
Sales Dollars

0.34675

Coefficients
Standard Error
t Stat
P-value
499.37518
473.81223 1.05395 0.30061
1.00769
0.23804 4.23334 0.00021

ars. She has collected these data for sales and supplies expenses for June 2010 through

Excel Instructions

No additional Excel instructions


No pivot tables, no tables/lists, no range names, no charts, no Solver models, no Analysis Too

/lists, no range names, no charts, no Solver models, no Analysis Toolpak procedures

o Analysis Toolpak procedures

The Air Force Museum Foundation has commissioned the purchase of 16 Four F Sixes, preWo
Each of the 16 will be flown to Air Force and aviation museums throughout the country for exh
Soren Industries wants to bid on the aircraft contract and asked for and received certain cost
respectively, were completed.
Output
1
9
33
70
Required
1. Graphically determine the learning curve.

Learning Curve
300.00
250.00

f(x) = 250.4749158664 x^-0.161623041


R = 0.9822749671

200.00

Output

150.00
100.00
50.00
0.00

10

20

30

40

50

60

Hours Per Unit

2. What are the following learning curve parameters:


Y=aX^b
a
b
R square
Learning curve percentage

3. If Soren Industries expects that the manufacturing time will be the same as it was in 1938,

Units
Hours to make

purchase of 16 Four F Sixes, preWorld War II aircraft. They will be built completely from scratch to the
ums throughout the country for exhibition. Aviation enthusiasts can also visit the production facility to

asked for and received certain cost information about the Four F Sixes from the Air Force. The informat

Total Hours
257
1,488
4,788
8,961

Hours Per Unit


257.00
165.33
145.09
128.01

0.6433203632

1,231
153.875
0.5987354086
149.625
0.5821984436

rning Curve

161623041

30

40

50

60

70

80

Hours Per Unit

250.47000
-0.16200
0.98230
80%

will be the same as it was in 1938, how many hours will it take to build the 16 aircraft for the Air Force

16
1,392

mpletely from scratch to the exact specifications used for the originals. As further authentication, the a
visit the production facility to see exactly how such aircraft were built in 1938.

m the Air Force. The information includes some of the old cost data from the builders of the original airc

2,313.0
0.643

e 16 aircraft for the Air Force Museum Foundation?

further authentication, the aircraft will be made using the technology and manufacturing processes av
938.

he builders of the original aircraft. The available information is for the total accumulated time as the fir

nufacturing processes available when the originals were built.

cumulated time as the first, eighth, and thirty-second aircraft,

Excel Instructions

Chart(s) - charts have many properties, you will set only the following properties.
Name
ChartType
Location
ChartWidth
ChartHeight
Series
Name
XValues
Values
PlotOrder
Format.Line.ForeColor:
Format.Fill.ForeColor:
ChartTitle
Caption
Font.Name
Font.Size
Font.Bold
ChartLegend
Position
Font.Name
Font.Size
Font.Bold
Axis - Horizontal
AxisTitle
AxisTickLabelsFormat
Axis - Vertical
AxisTitle
AxisTickLabelsFormat
ChartAreaColor
PlotAreaColor

any properties, you will set only the following properties.


Chart # 1
$B$12
Chart 1
Scatter
6
4
Series 1
Series1
$C$6:$C$9
$G$6:$G$9
Not this semester
Red 255, Green 255, Blue 255
Automatic
Learning Curve
Calibri
14
True
No chart legend

Hours Per Unit


#,##0;[Red]#,##0
Output
#,##0.00;[Red]#,##0.00
Red 235, Green 241, Blue 222
Red 217, Green 217, Blue 217

Dasher System Corporation spent 8,450 direct labor hours to manufacture a system that can
average-time learning curve applies to the manufacturing of this system. The variable costs i

Direct materials and components costs


Direct labor costs
Variable related manufacturing overhead
Fixed related manufacturing overhead

U. S. Postal Services has expressed interest in purchasing 1,521 units if the price is 'right'. Wh

Manufactured and sold


Contribution margin %
Cumulative average time learning curve
Learning curve model
a
b

Y = aXb
8450
0.1890338244

Units
First time
40th time

1
40

Cost Estimation
Direct materials
Direct labor & Variable overhead
Total variable cost
Revenue
Total variable cost
Contribution margin
Minimum price per unit (ROUND -3 to the left of the decimal point)

to manufacture a system that can detect presence of anthrax spores within 7 minutes. AntiRax 10600
of this system. The variable costs incurred in manufacturing the first system were:

$3,213
$172
$30
$124

per hour
per direct labor hour
per direct labor hour

1,521 units if the price is 'right'. What is the minimum price per unit that the firm should quote for the

39 units
315% all incremental costs
114%

Cumulative Average
Hours per Unit
8,450
=

1,521 units
8,450 hours

left of the decimal point)

Total
Hours
8,450

$3,213 cost
$202 combined per hour

hin 7 minutes. AntiRax 10600. Dasher requires all products to have a contribution margin of at least 31
em were:

1
2
4
8
16
32
64
128
256
512
1024
2048

he firm should quote for the 1,521 units?

per hour

$4,886,973
($1,706,900)
$3,180,073
$13,197,303
$3,180,073
$10,017,229.95
$7,000.00

8450
9633
10981.62
12519.0468
14271.713352
16269.75322128
18547.51867226
21144.17128638
24104.35526647
27478.96500377
31326.0201043
35711.6629189

margin of at least 315% of all incremental costs. The firm has since manufactured and sold 39 units an

2560

ured and sold 39 units and concluded that a 114% cumulative

Excel Instructions

No additional Excel instructions


No pivot tables, no tables/lists, no range names, no charts, no Solver models, no Analysis Too

/lists, no range names, no charts, no Solver models, no Analysis Toolpak procedures

o Analysis Toolpak procedures

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