Cost Accounting HW 3

# Cost Accounting HW 3 - MichaelBailey CostAccounting...

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Michael Bailey Cost Accounting Chapter 10 Homework 1. 10-26 2. y = 432000 + 15x y = 432000 + 15(36000) = 972000 Ryan:  28.50(36000) = 1026000 Costs less by 54000 to manufacture frames than acquring them from Ryan 1a. Garvin manufactured 30,000 frames at a total cost of  \$900,000, which means that the average cost of manfacturing a  bicycle frame is 900,000/30,000 or \$30/frame.  This is more  expensive than the deal Ryan is giving at \$28.50/frame. b. Garvin can use the answer in a to determine the cost of  manufacturing 36000 frames.  36000 * 30 = \$1080000 is total  cost of manufacturing 3. Need to make sure that the regression equation reflects all of the past data.   As of now we only know that the past data for the amount of production is  incorporated.  However, we do not know that the variety in prices is used,  which is an important factor.  By using the factor of price, we will definitely get  a more accurate regression equation.

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