Required:a.What is the learning-curve percentage, assuming the cumulative average-time method?b.What is the time for a new employee to build 16 units with this learning curve using the cumulative average-time method? You may use an index of -0.1520.Answer:a.JobHoursCumulativeCumulative Average13030302245427Learning percentage = 27/30 = 0.90b.Y = p Xq= 30 x 16-.1520= 19.683or1 unit = 302 units = 30 x 0.9 = 274 units = 27 x 0.9 = 24.38 units = 24.3 x 0.9 = 21.8716 units = 21.87 x 0.9 = 19.683 hours16 x 19.683 = 314.9 hoursDifficulty: 2Objective: 6Terms to Learn:learning curve, cumulative average-time learning modelMr . Kareem Abozeed

41146.The new cost analyst in your accounting department has just received a computer-generated report that contains the results of a simple regression program for cost estimation. The summary results of the report appear as follows:VariableCoefficientStandard Errort-ValueConstant$35.92$16.022.24Independent variable$563.80$205.402.74r2= 0.75Required:a.What is the cost estimation equation according to the report?b.What is the goodness of fit? What does it tell about the estimating equation? Answer:a.y = $35.92 + $563.80Xb.Goodness of fit is 0.75. It measures how well the predicted values match the actual observations. In this case, the equation passes the goodness of fit test because it is substantially above 0.30, the threshold of acceptance.Difficulty:1Objective: ATerms to Learn:cost estimation, simple regression147.Newton Company used least squares regression analysis to obtain the following output:Payroll Department Cost Explained by Number of EmployeesConstant$5,800Standard error of Y estimate630r20.8924Number of observations20X coefficient(s)$1.902Standard error of coefficient(s)0.0966Required:a.What is the total fixed cost?b.What is the variable cost per employee?c.Prepare the linear cost function.d.What is the coefficient of determination? Comment on the goodness of fit.Mr . Kareem Abozeed

41Answer:a.The constant or intercept is the total fixed cost of $5,800.b.The variable cost per employee is the X coefficient of $1.902.c.y = $5,800 + $1.902Xd.The coefficient of determination is the r2of 0.8924. This represents a very high goodness of fit. The closer to 1.0, the better the cost driver explains the cost.Therefore, the conclusion can be drawn that there is a significant relationship between the cost of the payroll department and the number of employees.Difficulty: 2Objective: ATerms to Learn:cost estimation, simple regression, coefficient of determination (r2)148.Schotte Manufacturing Company uses two different independent variables (machine-hours and number of packages) in two different equations to evaluate costs of the packaging department. The most recent results of the two regressions are as follows:Machine-hours:VariableCoefficientStandard Errort-ValueConstant$748.30$341.202.19Independent Variable $52.90$35.201.50r2= 0.33Number of packages:VariableCoefficientStandard Errort-ValueConstant$242.90$75.043.24Independent Variable$5.60$2.002.80r2= 0.73Required:a.What are the estimating equations for each cost driver?

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- Fall '16
- taher refaat
- Accounting, Difficulty, Kareem Abozeed