ACCT 320- Chap 8 homework handout

ACCT 320- Chap 8 homework handout - 5. the cost driver the...

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Chapter 8 Handout Yuriy Rodin #1. 312,000=218756+29886x Answer- TC=312,000+3.12Q #2. 312000 29886 331000 27969 349000 19580 362000 47368 368000 42089 361000 41108 342000 48411 314000 15666 288000 46050 278000 31640 294000 22489 316000 36821 312000 9 331000 19 349000 21 362000 12 368000 15 361000 10 342000 16 314000 8 288000 11 278000 13 294000 16 316000 11 312000 2200 331000 2327 349000 2435 362000 2526 368000 2555 361000 2506 342000 2380 314000 2360 288000 2018 278000 1878 294000 1991 316000 2140 3. a. 312000+3.12(40000)= 436,800 units b. 358000 c.368206 d. Future costs can be predited for all three cost drivers based on the maintenance costs that we currentl have in our possesion 4. as the number of machine hours used on the equipment increases so does the cost of maintaining that machinary. The number of repairs is not directly correlated with the maintenance cost going up or down.
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Unformatted text preview: 5. the cost driver the should use is the number of machine hours. This is because it is derectly correlated with mainenece cost unlike # of units or # of repairs. This would be the best estimate because they can better predict the costs. 250000 300000 350000 400000 10000 20000 30000 40000 50000 60000 Column B Linear Regression for Column B Axis Title Axis Title 250000 300000 350000 400000 5 10 15 20 25 Column B Linear Regression for Column B Axis Title Axis Title 250000 300000 350000 400000 500 1000 1500 2000 2500 3000 Column B Linear Regression for Column B Axis Title Axis Title...
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