Hours of maintenance Total of maintenance

Month
(X) cost (Y)

Jan 625 7950 Cost equation

Feb 450 7400
Mar 700 8275
Apr 550 7625
May 775 9100
Jun 850 9800

High 850 9800

Low 450 7400
Change 400 2400

Variable cost/unit 6
Total cost 9800
Total variable cost 5100
Total fixed cost 4700
 Y = dependent variable
X = independent variable

Y = 4700 + 6X
 Salaries and commissions
Unit (X)
(Y)
80000 10000
120000 14000

High 120000 14000

Low 80000 10000
Change 40000 4000

VC/unit 0.1
Total cost 14000
Total VC 12000
Total FC 2000
 Month Occupancy days (X) Electrical cost (Y)

Jan 2,604 6,257

Feb 2,856 6,550
Mar 3,534 7,986
Apr 1,440 4,022
May 540 2,289
Jun 1,116 3,591
Jul 3,162 7,264
Aug 3,608 8,111
Sep 1,260 3,707
Oct 186 1,712
Nov 1,080 3,321
Dec 2,046 5,196

High 3,608 8,111

Low 186 1,712
Change 3,422 6,399

VC/day 1.86995908825248 1.9

Total cost 8,111
Total VC 6,746.81
Total FC 1,364.19 1,364

Cost
Y = 1364 + 1.9X
equation
 product cost period cost
variable fixed
No. name of the cost direct direct
cost cost MOH selling
materials labor

1 rental revenue $40,000

cost of direct materials for

2
new product $40/unit x x

salary for supervisor

3
$2,500/month x x
wage for direct workers
4
$18/unit x x
rental cost of warehouse
5 for finished goods x x
$1,000/month
rental cost of equipment
6
$3,000/month x x
depreciation of buildings
7
$10,000/year x x
advertising cost
8
$50,000/year x x
9 shipping cost $10/unit x x
electrical costs of machines
10
$2/unit x x
return of investment
11
$6,000/year
period cost
opportunity sunk
administrative cost cost

x
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.98092843904
R Square 0.96222060253
Adjusted R Square 0.95466472303
Standard Error 149.044576266
Observations 7

ANOVA
df SS MS F Significance F
Regression 1 2828928.571429 2828929 127.34726688 9.5492177E-05
Residual 5 111071.4285714 22214.286
Total 6 2940000

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 1010.71428571 151.6827381782 6.6633441 0.0011491192 620.801394174

Units Shipped (X) 317.857142857 28.16677736161 11.284825 9.549218E-05 245.452136603
 Upper 95% Lower 95.0% Upper 95.0%

1400.627177255 620.80139417 1400.62717725

390.2621491113 245.4521366 390.262149111
 Total shipping
Month Units Shipped (X)
expense (Y)
Jan 4 2,200 4,000
Feb 7 3,100
3,500
Mar 5 2,600 f(x)==0.9622
R² 317.8
3,000
Apr 2 1,500
May 3 2,200 2,500
Jun 6 3,000 2,000
Jul 8 3,600
1,500

1,000
2. High low
method 500

-
high 8 3,600 1 2 3

low 2 1,500
change 6 2,100

VC/unit 350 4,000

Total VC 2,800
3,500 f(x) = 350 x
Total FC 800 R² = 1
3,000

Shipping cost 2,500

Y = 800 + 350X
equation 2,000

1,500

1,000
Total shipping
Month Units Shipped (X)
expense (Y) 500
Jan 4 2,200 -
Feb 7 3,250 1 2 3

Mar 5 2,550
Apr 2 1,500
May 3 1,850
Jun 6 2,900
Jul 8 3,600
 LEAST SQUARES
4,000

3,500
f(x)==0.962220602526725
R² 317.857142857143 x + 1010.71428571429
3,000

2,500

2,000

1,500

1,000

500

-
1 2 3 4 5 6 7 8 9

HIGH LOW METHOD

4,000

3,500 f(x) = 350 x + 800

R² = 1
3,000

2,500

2,000

1,500

1,000

500

-
1 2 3 4 5 6 7 8 9
 Miles/year (X) Average operation cost/mile Total annual cost (Y)
High 120,000 11.60 1,392,000
Low 80,000 13.60 1,088,000
Change 40,000 (2) 304,000

VC/mile 7.6
Total VC 912,000
Total FC 480,000

Equation Y = 480,000 +7.6X

3.
Total
estimated 1,240,000
cost

Miles/year 100,000
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.987074712
R Square 0.9743164872
Adjusted R Square 0.9706474139
Standard Error 721.80911837
Observations 9

ANOVA
df SS MS F Significance F
Regression 1 138352941.176471138352941 265.54839 7.98192615E-07
Residual 7 3647058.82352941 521008.4
Total 8 142000000

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 6529.4117647 1038.97782807228 6.2844573 0.0004103 4072.619595579

X-rays taken (X) 3.2941176471 0.202146986584523 16.295655 7.982E-07 2.8161159801947
 Upper Lower Upper
95% 95.0% 95.0%
8986.2039 4072.6196 8986.2039
3.7721193 2.816116 3.7721193
 Month X-rays taken (X) Cost (Y) 3. Month X-rays taken (X)
Jan 6,250 28,000 Jan 6,250
Feb 7,000 29,000 Feb 7,000
Mar 5,000 23,000 Mar 5,000
Apr 4,250 20,000 Apr 4,250
May 4,500 22,000 May 4,500
Jun 3,000 17,000 Jun 3,000
Jul 3,750 18,000 Jul 3,750
Aug 5,500 24,000 Aug 5,500
Sep 5,750 26,000 Sep 5,750

1.
high 7,000 29,000
low 3,000 17,000
change 4,000 12,000
LEA
VC/unit 3
35,000
Total VC 21,000
Total FC 8,000 30,000
R² = 0.974316487158244
25,000
Equation Y = 8000 + 3X 20,000

COST (Y)
15,000
2.
10,000
Estimated cost
21,800 5,000

-
2,500 3,000 3,500 4,000
X-rays taken 4,600

4.
Least squared Y = 6,529.41 +
regression 3.29X

Month X-rays taken (X) Cost (Y)

Jan 6,250 28,000
Feb 7,000 29,000
Mar 5,000 23,000
Apr 4,250 20,000
May 4,500 22,000
Jun 3,000 17,000
Jul 3,750 18,000
Aug 5,500 24,000
Sep 5,750 26,000
Estimated cost
21,663

X-rays taken 4,600

 Cost (Y)
26,750 HIGH LOW METHOD
29,000 35,000
23,000
30,000
20,750
R² = 1
21,500 25,000
17,000
20,000
19,250
24,500 15,000
25,250
10,000

5,000

-
2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500

LEAST SQUARES

R² = 0.974316487158244

000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500
UNIT (X)
00 7,000 7,500
 direct or indirect
direct or indirect
cost of particular VC/FC
No. item cost of the IC
patients
direct indirect direct indirect VC FC
salary of the head nurse in the
1 x x x
IC
costs of incidental supplies
2 x x x
consumed in the IC
cost of lighting and heating in
3 x x x
the IC
cost of disposable syringes
4 x x x
used in the IC

salary of the CAWC

5 x x x
information systems manager

costs of mailing letters

6 x x x
soliciting donations to CAWC

wages of nurses who work in

7 x x x
the IC

cost of medical malpractice

8 x x x
insurance for CAWC

depreciation on the fixtures

9 x x x
and equipment in the IC
 Number of ingots Number of ingots
Month Cost (Y) Month
(X) (X)
Jan 110 5,500 Jan 110
Feb 90 4,500 Feb 90
Mar 80 4,400 Mar 80
Apr 100 5,000 Apr 100
May 130 6,000 May 130
Jun 120 5,600 Jun 120
Jul 70 4,000 Jul 70
Aug 60 3,200 Aug 60
Sep 50 3,400 Sep 50
Oct 40 2,400 Oct 40

1.
high 130 6,000
low 40 2,400 LEAST SQUARES
change 90 3,600
7,000

VC/unit 40 6,000
R² = 0.968741603224362
Total VC 5,200
5,000
Total FC 800
4,000
Equation Y = 800 + 40X
3,000

2,000

1,000

-
20 40 60 80
 Cost (Y) Cost
5,200 7,000
4,400
6,000
4,000
4,800 5,000
6,000
4,000
5,600
3,600 3,000

3,200 2,000
2,800
2,400 1,000

-
20 40 60 80 100 120 140

LEAST SQUARES

R² = 0.968741603224362

40 60 80 100 120 140

140
 estimated
Activity Cost Pool expected activity activity rate
overhead cost
labor-related 52,000 8,000 DLHs 6.5 per DLH
machine-related 15,000 20,000 MHs 0.75 per MH
machine setups 42,000 1,000 setups 42.0 per setup
production orders 18,000 500 orders 36.0 per order
product testing 48,000 2,000 tests 24.0 per test
packaging 75,000 5,000 packages 15.0 per package
general factory 108,800 8,000 DLHs 13.6 per DLH

358,800
POHR 44.85
 J78 B52
expected expected
Activity Cost Pool activity rate amount amount
activity activity
labor-related 7.0 per DLH 1,000 7,000 40 280
machine-related 3.0 per MH 3,200 9,600 30 90
machine setups 40.0 per setup 5 200 1 40
production orders 160.0 per order 5 800 1 160
shipments 120.0 per test 10 1,200 1 120
general factory 4.0 per DLH 1,000 4,000 40 160

total overhead cost

22800 850
assigned
number of units
4000 100
produced

overhead cost/unit 5.70 8.50

DM cost per unit 6.50 31.00
DL cost per unit 3.75 6.00
Unit product cost 15.95 45.50