Eszhan Begenov Excel - Direct Labor-Hours Week 1 Week 2...

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Unformatted text preview: Direct Labor-Hours Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total Slope Intercept RSQ 8920 8810 8950 8990 8840 8890 8950 8990 71340 Machine-Hours 0 7200 8200 8700 7200 7400 8800 6400 7700 61600 2.24 63528.11 0.28 Electrical Costs 0 77100 84400 80400 75500 81100 83300 79200 85500 646500 According to the calculations carried out by Excel, the fixed maintenance cost (the intercept) is 63,528 Y=a +bX Y=63,528.11+2.24X $63,528.11 per week plus $2.24 per hour The R2 (i.e., RSQ) is 0.28, which is quite good and indicates that 28% of the variation in maintenance A Scattergraph Plot 100000 90000 80000 70000 Electrical Costs 60000 50000 40000 30000 20000 10000 0 0 2000 4000 6000 8000 10000 12000 Machine-Hour 20000 10000 0 0 2000 4000 6000 8000 10000 12000 Machine-Hour cost (the intercept) is 63,528.11per week and the variable cost (the slope) is 2.24 per hour. Therefore, the cost formula for m the variation in maintenance costs is explained by the variation in number of hours. x y Column L Column E 0 4000 5000 6000 7000 8000 9000 10000 63528.11 72488.11 74728.11 76968.11 79208.11 81448.11 83688.11 85928.11 10000 12000 10000 12000 refore, the cost formula for maintenance cost is: ...
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