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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
8-42 to 8-46 Regression Analysis Problems 8-42 through 8-46 are based on Armer Company, which is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the mainte- nance hours and costs for the last year and the results of the regression analysis follow:
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|
 January |
Hours of Activity 480 |
Maintenance  Costs $ 4,200 |
|
February |
320 |
3,000 |
|
March |
400 |
3,600 |
|
April |
300 |
2,820 |
|
May |
500 |
4,350 |
|
June |
310 |
2,960 |
|
July |
320 |
3,030 |
|
August |
520 |
4,470 |
|
September |
490 |
4,260 |
|
October |
470 |
4,050 |
|
November |
350 |
3,300 |
|
December |
  340 |
   3,160 |
|
Total |
4,800 |
$43,200 |
|
Average |
400 |
3,600 |
|
Average cost per hour ($43,200/4,800) = $9.00 a (intercept) |
 684.65 |
|
|
b coefficient |
7.2884 |
|
|
Standard error of the estimate |
34.469 |
|
|
R-squared |
.99724 |
|
|
t-value for b |
60.105 |
|
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