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Category > Accounting Posted 19 Aug 2017 My Price 9.00

Farnsworth Company

Problem 3-44 Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula

Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results:

Intercept                3,212

Slope                      15.15

 

Required:

1.       Using the results from the method of least squares, prepare a cost formula for the receiving activity.

2.       Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.)

3.       Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?

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Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 01:08 PM My Price 9.00

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