Cost det and analysis HW-Feb3 - P3­8 1 2 Order filing...

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Unformatted text preview: P3­8 1 2 Order filing costs= 9,320+5.14(# of orders)+2.06(# complex orders)+1.30(# gifts) 3 C= 9,320+5.14(300)+2.06(65)+1.30(100) = 9,320+1542+133.9+130 = 11,125.90 C=9,320+5.14(300)=10,862 = 10,862+or­ 3.60(1.56) = 10,862+or­ 5.616 = 10856.384<or= Y<or= 10867.616 C=9,320+2.06(65)=9453.9 = 9453.9+or­5.58(2.00) = 9453.9+or­11.16 = 9442.74<or= Y <or=9465.06 C=9320+1.30(100)=9450 = 9450+or­2.96(.75) = 9450+or­2.22 = 9447.78<or= Y <or=9452.22 ­ R^2 is the multiple coefficient of determination. ­ Overall, the cost equation that was developed for the cost of order filing was quite accurate and percise with little error. ­ Helena could simply add in 2.50 onto the 1.30 in the equation. By using the equation, she will effectively identify the usefulness of the extra charge by looking at the behavior of the activity costs through the difference of the equations before the 2.50 charge and after the charge. 4 ...
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This note was uploaded on 02/23/2011 for the course ECON 101 taught by Professor Profeessor during the Spring '11 term at Aachen University of Applied Sciences.

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