SPSHT2_06

# 1 1 on sheet 2 calculate the variable cost component

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1. On Sheet 2 , calculate the variable cost component (\$/unit), the fixed cost component, and then summarize these two amounts in a final cost formula for each of the High/Low method and the Regression method . (see section below headed Creating a String) High/Low Method : -Go to a separate area on the worksheet and copy the two sets of input data to this area using paste special values (you can leave out the date column). Assign the following named ranges to the two ranges of data ---costunits for x and costdollars for y . -Sort the data with the primary key being the named range for the cost driver units. -Calculate the variable rate and the fixed component of the cost and put both in a cost formula using a string such as & or concatenate-----see example using & on next sheet. Regression Method : -use the same schedule from the High Low method and the same named ranges from the High/low method -use the functions SLOPE and INTERCEPT to calculate the variable and fixed components respectively and put into a equation cost formula using a string such as & or concatenate------see example using “& “ on next sheet . Variable costs should be stated to 3 decimal places and Fixed costs to zero decimals. The format of the cost component calculations and the final formulas should be the same for both methods (i.e., this is a comparison of methods). Include the name of cost and the cost-driver units (both referenced from input). Cell protect output cells and input cell headings 2. On Sheet 3 , prepare and output table that consists of four columns : Columns 1 and 2 will be a duplicate of the sorted cost driver units and related cost data (used previously on Sheet 2) except the column headings will now read, Actual units and Actual costs ; Column 3 will be the calculated cost data based on the High/Low cost formula (cost driver units x high/low cost formula)----called High Low cost ; Column 4 will be calculated cost data based on the regression cost formula (i.e., cost driver units x regression cost formula)-----called Regression cost . 3. On Sheet 3 , Prepare an XY chart with two cost lines: one for the high/low cost data, and one for the regression cost data, and the actual data points. (see detailed instructions below under Graphing Requirements ) Submit a printout of your input sheet, output sheets and cell contents for all sheets.
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